On any given day we know a salesman can earn $0 with a 40% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0.
B) $140.
C) $300.
D) It cannot be determined from the available information.
B
You might also like to view...
Related to the Economics in Practice on page 197. Which of the following represents a situation in which a school is experiencing diseconomies of scale?
A. Student enrollment decreases by 30 percent and average total cost increases by 50 percent. B. Student enrollment decreases by 25 percent and average total cost increases by 10 percent. C. Student enrollment decreases by 50 percent and average total cost decreases by 20 percent. D. Student enrollment decreases by 30 percent and average total cost does not change.
Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments
Indicate whether the statement is true or false
To an economist, the term "needs"
A) means the purchase of necessary goods. B) is objectively undefinable. C) identifies the purchases of basic goods and services. D) refers to the purchase of goods by the poor.
Farm productivity per acre grew most rapidly after
a. the Revolutionary War b. the Civil War c. World War I d. the 1929 stock market crash e. World War II