A chance node on a decision tree has four possible outcomes, each worth $100,000. The probabilities of the outcomes occurring are assessed as 10%, 27%, 43%, and 20%. What is the expected value of this chance node?
Fill in the blank(s) with the appropriate word(s).
$100,000
Because the sum of the probabilities for this (or any) event node is 1.0, and because the outcomes are each worth $100,000, the chance node is worth $100,000.
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