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An Investor Is Considering a $25,000 Investment in a Start-Up

question 75

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An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.2 of a $15,000 loss, probability 0.15 of a $20,000 loss, probability 0.05 of a $40,000 Profit, and probability 0.6 of breaking even (a profit of $0) . What is the expected value of the profit?

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Definitions:

Lurkers

Describes individuals who observe or read content in online communities or social networks but do not actively participate or contribute.

Participate

Engaging or taking part in an activity or event.

Media Multiplexity

The theory that relationships are maintained over various forms of communication media, with stronger relationships utilizing a greater variety of channels.

Social Media

denotes platforms and technologies that enable users to create, share content, and participate in social networking online.

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