Statistics question - An investment can lead to a profit of $10,000, $5,000, $4,000, and $1,000.?

Question

with respective probabilities of .4, .3, .2, and .05. In addition, there is a 3 percent chance of breaking even and a small chance of losing $10,000. Find the expected profit.

Answer 1

Do you really mean, for example, that the probability of making $10,000 is greater than the probility of making $1000?

Answer 2

Multiply all the profits by their respective probabilities and add the products. Note that all probabilities must add up to 1.0.
Expected Profit = 0.40($10,000)+ 0.30($5,000) +0.20($1,000) +0.03($0) - 0.07($10,000) = $5,000