Statistics Problem 1

Discussion in 'General Chat' started by super9xman, Jul 17, 2008.

  1. #1
    An investment banker is considering investing in one of two companies. Sargasso holdings has projected earning of 7% with a probability of .62 17% with a probability of .12 and -.20% with probability of .26. Tranquility Utility has projected earning of 3% with a probability of .62, 40% with a probability of .01 and -7% with a probability of .37.


    A) What are the odds in favor of a 7% gain for Sargasso Holdings?

    B) What is the expected value of each investment?

    C) Which is better investment, and why?


    Can anyone solve this?
     
    super9xman, Jul 17, 2008 IP