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Probability on return on investment - Choosing an investment

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If one investment can give you $1200 with a probability of .20 and you could lose $800 with a probability of .80, and another investment can give you $600 with a probability of .70 and a loss of $300 with a probability of .30, which investment is better?

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Solution Summary

This solution helps decide on the better investment based on expected values.

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