A person is considering investing in a startup company. There are 3 possible outcomes being considered. Probability of t

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answerhappygod
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A person is considering investing in a startup company. There are 3 possible outcomes being considered. Probability of t

Post by answerhappygod »

A person is considering investing in a startup company. There
are 3 possible outcomes being considered. Probability of the
company failing within 2 years is 60%.The probability the company
continues to grow after 2 years is 30%. The third possibility (the
one the investor is hoping for), is the company will be bought
within 2 years giving the investor a large profit. Construct a
probability distribution table showing each possible outcome and
the probability for each outcome.
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