You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favourable or unfavourable and you estimate the percent returns over the next year. What is the expected value for Company 1?
A) 9.20%
B) 9%
C) 9.6%
D) 9.4%

Question

You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favourable or unfavourable and you estimate the percent returns over the next year.  What is the expected value for Company 1?
A) 9.20% 
B) 9% 
C) 9.6% 
D) 9.4%

Quizplus · Accepted Answer

The Answer of You have a decision to invest $10,000 in any of four different companies. You estimate the probabilities that the economy will be favourable or unfavourable and you estimate the percent returns over the next year.  What is the expected value for Company 1?
A) 9.20% 
B) 9% 
C) 9.6% 
D) 9.4%

You Have a Decision to Invest $10,000 in Any of Four