Risky Undertaking ​ Suppose You Make a $2,000 Investment in a Risky

question 213

Essay

Risky Undertaking ​
Suppose you make a $2,000 investment in a risky undertaking.There is a 50% chance that the payoff from the investment will be $5,000,a 20% chance that you will just get your money back,and a 30% chance that you will receive nothing at all from your investment. ​ ​
-{Risky Undertaking Narrative} Find the expected value of the payoff from your investment of $2,000.

---

Definitions:

Heroin

An opioid drug synthesized from morphine that is used illicitly for its euphoric effects, often leading to addiction and health problems.

General Deviance Syndrome

General Deviance Syndrome suggests that various types of deviant behavior are interrelated, stemming from common causative factors.

Correlated With Crime

A term implying a statistical relationship between two variables, where changes in one variable are associated with changes in levels of crime.

Legal Drugs

Substances that are legally available, either over-the-counter or by prescription, and are used for medical purposes.