Question

in a propsed bussiness woman venture, a bussiness woman predicts 45 percent chanceshe will make 60,000 and a 55 percent chance she will loose 60,000 determine her expected value

Answer 1

that has to do with gametheory and a matrix.... i think

Answer 2

so how would u solve it?

Answer 3

you just need to add the products of the probability of each outcome and their expected values. .55*60000+.45*(-60000)=6000. she expects to earn 6000, and she would if she repeated this business venture infinitely many times.