Your company plans to invest a particular project. There is a 5% chance that you will lose $30, 000, a 40% chance that you will break even, and a 25% chance that you will make $55, 000. Based solely on this information, what should you do?

Answer 1

expected value of investment:

.05*(-30,000)+.40*0+.25*55,000=
12,250

so the investment has a postitive outcome as of now. Notice all outcomes are not listed, only listed are 70 percent of the outcomes. Frankly, I would like more information.