You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table. ProjectBoom (50%)Recession (50%)A$40-$20B-$10$30C$50-$50D$60$60If a manager adopted both project A and project B simultaneously, the expected value of this joint project would be:
A. $40.
B. $20.
C. $30.
D. None of the statements are correct.
Answer: B
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