Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Kate's expected value of payoff is:
A. $5.00.
B. $5.75.
C. $4.50.
D. $4.00.
C. $4.50.
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A. D1to D2. B. D2to D1. C. D2to D3. D. D1to D3.
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Indicate whether the statement is true or false
A linear demand curve:
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Like private borrowers, governments
A. can raise taxes to pay off their debts. B. have to pay interest on their debts. C. regulate the industries through which they borrow. D. do not, in the long run, have to pay back their debts.