Percentage/Earnings

[charwil]

A CD has a 5% chance of being a hit and making 5.2 million. It has a 50% chance of making 0.9 million. It has a 45% chance of floppy and breaking even. What is the expected earnings of the CD?

 

[Deleted member 4993]

A CD has a 5% chance of being a hit and making 5.2 million. It has a 50% chance of making 0.9 million. It has a 45% chance of floppy and breaking even. What is the expected earnings of the CD?

Please show us what you have tried and exactly where you are stuck.

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https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520​

Please share your work/thoughts about this problem.

 

[Steven G]

A CD has a 5% chance of being a hit and making 5.2 million. It has a 50% chance of making 0.9 million. It has a 45% chance of floppy and breaking even. What is the expected earnings of the CD?

It would be most helpful if you can inform us exactly where you are stuck? Do you know the formula for expected value (or expected earnings)?

 

[charwil]

I was thinking that the expected earnings would be the combination of 5.2 million and 0.9 million, making up 55% of a chance of sales..

 

[Dr.Peterson]

I was thinking that the expected earnings would be the combination of 5.2 million and 0.9 million, making up 55% of a chance of sales..

It's a combination; do you know what combination?

Expected value is the sum of all possible values, each multiplied by the probability of its happening. (You've probably been taught that.)

See what you get when you do that.