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There is a 60​% chance of making ​$12,000​, a 20​% chance of breaking​ even, and a

20​% chance of losing ​$6,000.

 

What is the expectation of this purchase.

 Jul 19, 2016
 #1
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E = 0.6*12000 + 0.2*0 - 0.2*6000 → 6000

 Jul 20, 2016

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