CCSS Honors 2.4 Example 3

Author:
Walch Education
Topic:
Distributions, Expected Value, Probability
Chin has $1,500 to invest and must choose between two investment strategies, one high-risk and one low-risk. The tables that follow describe each investment. Which investment should he choose? Explain.
  1. Create a probability distribution for each investment.
  2. Calculate the expected value for each investment.
  3. Determine which investment he should choose.