Assume that one of two possible outcomes will follow a decision. One outcome yields a $75 payoff and has a probability of 0.3; the other outcome has a $125 payoff and has a probability of 0.7. In this case the expected value is
A) $85.
B) $60.
C) $110.
D) $35.
C
You might also like to view...
The debate over how the government should respond to deep economic downturns may be easier to overcome if we focus on infrastructure spending because:
A. we have resolve the debate over infrastructure spending before we do anything else. B. there's broad agreement that the government should increase infrastructure spending. C. insufficient infrastructure spending is the root cause of most economic downturns. D. there's broad agreement that the government should decrease infrastructure spending.
An increase in the number of pineapple growers results in
A) an increase in the supply of pineapples and a rightward shift in the supply curve of pineapples. B) an increase in the supply of pineapples and a leftward shift in the supply curve of pineapples. C) an increase in the quantity of pineapples supplied and no shift in the supply curve of pineapples. D) no change in the supply of pineapples and a movement along the supply curve of pineapples. E) None of the above answers is correct.
In a regulated natural monopoly, a marginal cost pricing rule maximizes
A) total costs. B) producer surplus. C) economic profit. D) total surplus.
A bank manager tells you that she doesn't create money. She just lends the money that people deposit. Explain why she's wrong
What will be an ideal response?