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Expected Value | Portfolium
Expected Value
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February 7, 2021 in Statistics
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A financial executive for Fidelity Investments lives in Boston but frequently must travel to New York. She can go to New York by car, train, or plane. The cost for a plane ticket from Boston to New York is $200 and it is estimated the trip takes 30 minutes in good weather and 45 minutes in bad weather. The cost for a train ticket is $100, and the trip takes 1 hour in good weather and 2 hours in bad weather. The cost to drive her own car from Boston to New York is $40, and this trip takes 3 hours in good weather and 4 hours in bad weather. The executive places a value of $60 per hour on her time. The weather forecast is 60% chance of bad weather tomorrow.
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