The gross payoffs (X) from the investment have the following probability mass function. x p(x) 0...

Question

Question

The gross payoffs (X) from the investment have the following probability mass function.

The expected gross payoff (mean payoff) is:...............

Answer 1

Answer #1

Solution :

given table

expected value = E(x)= X * P(X)

= 0 * 0.5+ 2000 * 0.2+ 5000 *0.3

= ( 0+ 400+ 1500 )

= 1900

The expected gross payoff (mean payoff) is:......1900

Answer 2

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