An investment counselor calls with a hot stock tip. He believes that if the economy remain strong the investment rules will result In a profit of $30,000. If the economy grows at a moderate pace the investment will result in a profit of $10,000 however if the economy goes into recession the investment will result in a loss of $30,000. You contact and economics who believes there is a 20% probability the economy will remain strong a 70% probability the economy will grow at a moderate pace in a 10% probability the economy will slip into recession. What is the expected profit from this investment?

$10,000

Step-by-step explanation:

Given the following :

Profit if economy remains strong = $30,000

Profit if economy grows at moderate pace = $10, 000

Loss if economy goes into recession = $30,000

Probability that economy will remain strong = 20% = 0.2

probability the economy will grow at a moderate pace = 70% = 0.7

probability the economy will slip into recession = 10% = 0.1

Expected value = sum of (x * p(x))

Here expected value equals;

Strong economy profit = $30,000 * 0.2 = $6000

Moderate economy profit = $10,000 * 0.7 = $7000

Loss on Recession = $30,000 * 0.1 = $3000

Expected profit = $(6000 + 7000 - 3000)

Expected profit = $10,000

there are 70 more legs than eyes at the dog show (196 – 126 = 70). dogs have two more legs than eyes, and humans have the same number of legs as eyes. thus 70 is twice the number of dogs at the show, so the number of dogs is half of 70, which is 35. to get the number of humans, subtract 35 from 63: 63 – 35 = 28.

step-by-step explanation: