Understanding Basic Statistics 6th Edition by Charles Henry Brase,Corrinne Pellillo Brase

Exercise 31

Interpretation An investment opportunity boasts that the chance of doubling your money in 3 years is 95%. However, when you research the details of the investment, you estimate that there is a 3% chance that you could lose the entire investment. Based on this information, are you certain to make money on this investment Are there risks in this investment opportunity