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An Investment Has the Possibility of Earning $10,000,$8,000 or $2,000

Question 18

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An investment has the possibility of earning $10,000,$8,000 or $2,000 depending on the state of the economy that is prosperity,modern growth,and recession respectively.The probabilities of prosperity,moderate growth,and recession are 0.4,0.3,and 0.3 respectively.The expected value of the investment is:


A) $10,000.
B) $21,000.
C) $7,000.
D) $3,000.
E) $8,000.

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