Assume that 10% of published books break even, 20% lose

Jayson Hebert

Jayson Hebert

Answered question

2022-02-11

Assume that 10% of published books break even, 20% lose $10,000, 30% lose $20,000, and 40% net $10,000. What is the expected value of a random book?

Answer & Explanation

Macey Mata

Macey Mata

Beginner2022-02-12Added 13 answers

Let X be the profit per book. E(X)=$[0.1×0+0.2×(10000)+0.3×(20000)+0.4×10000]=$4000 the expected value of a random book is "a loss of 4000 dollars."

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