Use the following table to calculate the expected value and answer the probability question. The table describes the possible outcomes (return on your investment) and their associated probabilities. x P(x) -9% 0.08 -2% 0.16 0% 0.05 7% 0.20 12% 0.26 18% 0.21 23% 0.04 The first two outcomes are losses (negative values). A. What is the expected value of this distribution (round to 4 decimal places and express as a percent ex. .0567 = 5.67%)? B. What is the probability that you earn more than 12% on your investment? 2. The proportion of students at SDSU that work full time is 18%. If you randomly select 22 SDSU students: (for questions B thru D round final answer to 5 decimal places) A. What is the expected value of this distribution (no rounding)? B. What is the probability exactly 3 of those students selected are working full time? C. What is the probability more than 1 of those students selected are working full time? D. What is the probability at most 2 of those students selected are working full time?
Added by Angela H.
Step 1
Expected value = (-9% * 0.08) + (-2% * 0.16) + (0% * 0.05) + (7% * 0.20) + (12% * 0.26) + (18% * 0.21) + (23% * 0.04) Show more…
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