In: Statistics and Probability
A start-up company has 2000 investors, that company loses investors at a rate of 10 per year. Every time the company loses an investor, the company gets a loss of $200,000. For every investor that remains the company makes a profit of $2,000. Let F be the total earnings the company makes in a year, and X be the number of investors the company loses.
1)Write a function that calculates yearly earnings F as a function of X
2)Find P(F < 0), the probability that earnings are negative
3)E[F]
4)What is the probability that the company loses exactly 5 investors in a given year, given that they have not lost any investors in the first half of the year