Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he averages a $700 loss. Suppose that he has good days 20% of the time, bad days 50 % of the time, and the rest of the time he breaks even. What is the expected value for one day of Jim's day- trading hobby?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.3: Applications: Growth And Decay
Problem 16E
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Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he averages a $700 loss. Suppose that he has good
days 20% of the time, bad days 50 % of the time, and the rest of the time he breaks even. What is the expected value for one day of Jim's day-
trading hobby?
Answe
Transcribed Image Text:Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he averages a $700 loss. Suppose that he has good days 20% of the time, bad days 50 % of the time, and the rest of the time he breaks even. What is the expected value for one day of Jim's day- trading hobby? Answe
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