construct a probability distribution for the data and draw

Chapter 5, Problem 20E

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QUESTION:

Investment Return The probabilities of a return on an investment of \(\$ 5000, \$ 7000 \text {, and } \$ 9000\) are \(\frac{1}{2}, \frac{3}{8}, \text { and } \frac{1}{8}\) respectively.

Equation Transcription:

Text Transcription:

$5000, $7000, and $9000

1 over 2,3 over 8, and 1 over 8

Questions & Answers

QUESTION:

Investment Return The probabilities of a return on an investment of \(\$ 5000, \$ 7000 \text {, and } \$ 9000\) are \(\frac{1}{2}, \frac{3}{8}, \text { and } \frac{1}{8}\) respectively.

Equation Transcription:

Text Transcription:

$5000, $7000, and $9000

1 over 2,3 over 8, and 1 over 8

ANSWER:

Solution:

Step 1 of 2:

  We have to construct a probability distribution of the data and to draw a graph for the distribution.

Thus,

         

X 

5000

7000

9000

P(x) 

 Now we have to draw a graph for the distribution.

         

    X

  P(X)

 5000

0.5

7000

0.375

9000

0.125


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