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NobleWho
NobleWho
22.03.2021 • 
Mathematics

An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment 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 an economist who believes there is a 20​% probability the economy will remain​ strong, a ​60% probability the economy will grow at a moderate​ pace, and a ​20% probability the economy will slip into recession. What is the expected profit from this​ investment?

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