You are given the following gamble: behind one door is $500; behind another is $100; behind another is $0. What is the expected value of the gamble?
A. $200
B. $300
C. $600
D. We need more information in order to answer
Answer: A
You might also like to view...
There is a practice in the stock market known as "short selling" whereby an individual will borrow stock from someone, turn around and sell it and then buy it back when it's price has fallen in order to return the stock back to the lender
What expectation does this short seller have about the price of this company's stock? How can he expect to make money at this practice? What could go wrong that might cost him money?
The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively high. B. the elasticity of supply of cupcakes is relatively low. C. the supply curve for cupcakes is downward sloping. D. cupcakes are a normal good.
If the economy is operating at capacity, an increase in government spending will ________ investment.
A. partially crowd out B. minimally crowd out C. have no crowding-out effect on D. completely crowd out
The demand for a good is inelastic if, when its price rises,
A) the demand falls. B) the quantity demanded falls. C) the quantity demanded increases. D) total dollar expenditure on the good decreases. E) total dollar expenditure on the good increases.