Rotter Partners is planning a major investment. A probabilistic estimate gives the following distribution(in millions of dollars):
|
Profit
|
1
|
1.5
|
2
|
3
|
10
|
|
Probability
|
.3
|
.2
|
.2
|
.2
|
?
|
a) Find the missing probability.
b) Find the mean and standard deviation.
c) What is the expected value of the profit? (Hint: use part b)
d) Is it unusual to have a profit of 10 million dollars?
e) Use probabilities to determine whether having a profit of 1.5 million dollars is an unusually low number.