The following table shows a partial probibility distributionfor a company's projected profits in the thousands of dollars( negative numbers denotes a loss) X f(x) -100 0.10 0 0.20 50 0.30 100 0.25 150 0.10 200 ??? What is the probability associated with thecompany mking a profit of $200,000? What is the probability that this companywill be profitable? The following table shows a partial probibility distributionfor a company's projected profits in the thousands of dollars( negative numbers denotes a loss) X f(x) -100 0.10 0 0.20 50 0.30 100 0.25 150 0.10 200 ??? What is the probability associated with thecompany mking a profit of $200,000? What is the probability that this companywill be profitable?
Explanation / Answer
We know that the sum of all the probabilities is equal to 1,so 0.10+0.20+0.30+0.25+0.10+f(200) = 1 Thus, f(200) = 0.05 P(profitable) = f(50)+f(100)+f(150)+f(200) =0.30+0.25+0.10+0.05 = 0.70