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Recall the problem you saw earlier, where we were asked by a company to suggest whether it should invest in a given project or not. We had
made this probability distribution for X, the net revenue of the project:
X (Net Revenue of Project, in Crore) P(x)
-305
0.1
+15
0.7
+95
0.2
Now we are in a position to find the expected value for X, the return of the project. This is called the expected return. If it comes out to be
negative, we can say that the project is not worth investing in,​

Answer 1

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PG Diploma in Data Science December 2020

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cih

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Recall the problem you saw earlier, where we were asked by a company to suggest whether it should invest in a given project or not. We had

made this probability distribution for X, the net revenue of the project:

X (Net Revenue of Project, in Crore) P(x)

-305