CCSS IP Math III 1.6.2 Example 4
- Walch Education
A musician has decided to create an album on her own label at a cost of $40,000. The chances of producing a successful, or profitable, album are 10%. She predicts that the profit—the money earned after accounting for the start-up cost—from a successful album would be $159,000. She is asking for your advice: do you think she should go forward with this venture?
- Identify the given information.
- Determine how to best apply the given information.
- Calculate the expected value of each outcome.
- Determine if the musician should move forward with this venture.