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Expected Value of Binary Project

EasyStatistics & Probability00:00
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Your question is Expected Value of Binary Project. Take a moment with it on the right.

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Problem

Scenario

You are evaluating a simple trading technology project in SIG's research stack. The project has a 60% chance of generating a $100,000 profit and a 40% chance of producing a $50,000 loss.

Question

What is the expected value of this project?