Values for company's projected profit and their associated probability: (x values in 1000s)
What is the probability that the company will be profitable?
I don't understand why my answer is not consistent.
Answer:
Pr(X>0)=Pr(X≥50) . <- Should be true
1-Pr(X≤50)=1-Pr(X<50)
1-0.6 =1-(Pr(X≤50)-Pr(X=5))
0.4=1-(1-0.6-0.3)
0.4=0.9
I'm not using the cdf properly in one or both cases but have no way of knowing. What is the correct answer?
x | -100 | 0 | 50 | 100 | 150 | 200 |
P(X=x) | 0.1 | 0.2 | 0.3 | 0.25 | 0.1 | 0.05 |
What is the probability that the company will be profitable?
I don't understand why my answer is not consistent.
Answer:
Pr(X>0)=Pr(X≥50) . <- Should be true
1-Pr(X≤50)=1-Pr(X<50)
1-0.6 =1-(Pr(X≤50)-Pr(X=5))
0.4=1-(1-0.6-0.3)
0.4=0.9
I'm not using the cdf properly in one or both cases but have no way of knowing. What is the correct answer?