Math Problem Statement

Biotech firm:

x P(X = x)  x · P(X = x)

$6,000,000

0

−$1,000,000

Solution

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Math Problem Analysis

Mathematical Concepts

Probability
Expected Value
Random Variables

Formulas

Expected value formula: E(X) = Σ[x * P(X = x)]

Theorems

Law of Total Expectation

Suitable Grade Level

University Level (Probability and Statistics)