Four possibilities have probabilities 0.4, 0.2, 0.2 and 0.2 and values $40, $30, $20, and $10 respectively. The expected value is:
a. $22
b. $24
c. $26
d. $28
d
You might also like to view...
The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A) lending risk. B) systemic risk. C) moral hazard. D) liquidity risk.
Suppose you will receive $800 in two years. If the interest rate is 5 percent, then the present value of this future payment is
a. $725.62 . It would be higher if the interest rate were higher. b. $727.28 . It would be higher if the interest rate were higher. c. $725.62 . It would be lower if the interest rate were higher. d. $727.28 . It would be lower if the interest rate were higher.
Which is NOT a characteristic of monopolistic competition?
A. lack of collusion among firms B. few firms in the industry C. small share of market to each firm D. independence of each firm's decisions
After the imposition of the quota, the numbers of TVs imported will drop by_____ thousand units. 
A. 100 B. 20 C. 40 D. 80