Thread: Econ HW - Expected Value
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Old 10-22-2007, 09:42 PM
ItalianFX ItalianFX is offline
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Default Re: Econ HW - Expected Value
[ QUOTE ]


(100 + P)^2 = (.25)(110)^2 + (.75)(100)^2
10000 + 200P + P*P = 10525
P^2 + 200P - 525 = 0

P = $2.59



[/ QUOTE ]

I'm a freakin' idiot. How do you solve for P in that last step?
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