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a business evaluates a proposed venture as follows. it stands to make a profit of $10,000 with probability , to make a profit of $5000 with probability , to break even (zero profit) with probability , and to lose $5000 with probability . the expected profit in dollars is:

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Since the business evaluates a proposed venture, the expected profit in dollars is option (c) 3000.

What does business venture mean?

Business endeavor is seen as a business venture where there is a risk of failure or loss together with the hope of profit.

Note that Venture capital is a type of private equity investment that venture capital funds or organizations offer to startups, early-stage, and developing businesses that have either shown or have a high potential for growth.

In the question above:

There is profit of $10,000 and  $5000 as well as lose $5000.

Therefore, it is computed as:

(10,000x.15) + (5,000x.45) + 0 - (5,000x.15)

= 3000.

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See full question below

A business evaluates a proposed venture as follows. It stands to make a profit of $10,000 with probability 3/20, to make a profit of $5000 with probability 9/20, to break even with probability 5/20, and to lose $5000 with probability 3/20. The expected profit in dollars is

(a) 1500.

(b) 0.

(c) 3000.

(d) 3250.

(e) -1500.