Question

There are two houses with almost identical characteristics available for investment in two different neighborhoods. The real estate markets for the two neighborhoods are very different. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution: Returns Probability Neighborhood A Neighborhood B 0.25 -$22,500 $30,500 0.40 $10,000 $25,000 0.35 $40,500 $10,000 For instance, there is a 0.35 probability that the house in Neighborhood A can be sold for a $40,500 profit in 10 years. The probability that the house in Neighborhood B can be sold for a $25,000 profit in 10 years is 0.40. What is the expected gain for the house in Neighborhood A? Your answer should have 0 decimal places. That is, your answer should be a whole number.

          There are two houses with almost identical characteristics available for investment in two different neighborhoods. The real estate markets for the two neighborhoods are very different. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
Probability Neighborhood A Neighborhood B
0.25  -$22,500  $30,500
0.40  $10,000  $25,000
0.35  $40,500  $10,000
For instance, there is a 0.35 probability that the house in Neighborhood A can be sold for a $40,500 profit in 10 years. The probability that the house in Neighborhood B can be sold for a $25,000 profit in 10 years is 0.40.
What is the expected gain for the house in Neighborhood A?
Your answer should have 0 decimal places. That is, your answer should be a whole number.

There are two houses with almost identical characteristics available for investment in two different neighborhoods. The real estate markets for the two neighborhoods are very different. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
Probability Neighborhood A Neighborhood B
0.25 -22,50030,500
0.40 10,00025,000
0.35 40,50010,000
For instance, there is a 0.35 probability that the house in Neighborhood A can be sold for a 40,500 profit in 10 years. The probability that the house in Neighborhood B can be sold for a25,000 profit in 10 years is 0.40.
What is the expected gain for the house in Neighborhood A?
Your answer should have 0 decimal places. That is, your answer should be a whole number.

Added by Jamie K.

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