# An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result in a profit of ​$40 comma 40,000. If the economy grows at a moderate​pace, the investment will result in a profit of ​$ 10 comma 000 10,000. ​However, if the economy goes into​ recession, the investment will result in a loss of $40,000. You contact an economist who believes there is a 30​% probability the economy will remain​ strong, a 60​% probability the economy will grow at a moderate​ pace, and a 10​% probability the economy will slip into recession. grabrovi0u 2022-10-23 Answered An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result in a profit of ​$ 40 comma 40,000. If the economy grows at a moderate​pace, the investment will result in a profit of ​$10 comma 000 10,000. ​However, if the economy goes into​ recession, the investment will result in a loss of$40,000. You contact an economist who believes there is a 30​% probability the economy will remain​ strong, a 60​% probability the economy will grow at a moderate​ pace, and a 10​% probability the economy will slip into recession.
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Spielgutq1
xpected profit from this
investment $=0.3\cdot 40000\cdot 0.6\cdot 10000-0.1\cdot 40000\phantom{\rule{0ex}{0ex}}=14000$