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Econometrics

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Moderate

Discrete Probability Density Function Example

EMETRC-ETEXYT

Consider that a store can have five different profit outcomes:

$$\pi = (-\$20,\$0,\$10,\$20,\$30)$$

The probability of each of the outcomes, respectively, is:

$$Pr[\pi] = (0.1,0.3,0.4,0.1,0.1)$$

What is the probability that the store will have at least $\$20$ in profits?

A

$0.1$

B

$0.2$

C

$0.9$

D

$0.8$

E

$0$