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)?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's a combination; do you know what combination?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..