(Choose 1 answer)
(See picture)
There are two houses with almost identical characteristics available for investment in two different neighborhoods with drastically different demographic composition. The anticipated gain in value when the houses are sold in 10 years has the following probability distribution:
Returns
A. $40,750
B. $33,850
C. $47,250
D. None of the other choices is correct
Ε. $54,100
Probability
Neighborhood A
-$22,500
0.25
0.40
0.35
$10,000
$25,000
$40,500
Neighborhood B
$30,500
$10,500
What is the expected value gain if you invest in both houses?
vant
the exam.
ExQ: 13
