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.

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Definitions:

Body Covering

The outermost layer or material that covers the body of an organism, such as skin, fur, feathers, or scales.

Venom

A toxic substance secreted by animals, such as snakes and spiders, often used to immobilize or kill prey and for defense.

Stingrays

Marine cartilaginous fish known for their flat bodies and long, whip-like tails equipped with venomous stingers, used for defense.

Spearlike Point

A sharp, pointed tool or weapon designed for thrusting or throwing, typically narrow and elongated.