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Mathematics, 07.03.2020 01:17 DefineSilver3837
A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward, hoping to make a profit. If the horse wins both races, its value will jump to $100,000. If it wins one of the races, it will be worth $50,000. If it loses both races, it will be worth only $10,000. The man believes there’s a 20% chance that the horse will win the first race and a 30% chance it will win the second one. Assuming that the two races are independent events, find the man’s expected profit.
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A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward,...
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