III.8. Profit from a risky investment. Rotter Partners is planning a major investment. The amount of profit X is uncertain, but a probabilistic estimate gives the following distribution (in millions of dollars):
Profit: | −1 | 0 | 1 | 2 |
Probability: | 0.1 | 0.1 | 0.2 | 0.2 |
Profit: | 3 | 5 | 20 | |
Probability: | 0.2 | 0.1 | 0.1 |
What is the expected value of the profit?