Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Kate's expected value of payoff is:
A. $5.00.
B. $5.75.
C. $4.50.
D. $4.00.
C. $4.50.
Economics
You might also like to view...
Suppose the total population of an economy is 150 million, the labor force is 100 million, and the unemployment is 94 million. The unemployment rate is _____
a. 6 percent b. 80 percent c. 94 percent d. 10 percent e. 15 percent
Economics
Technological advances primarily help a country increase its rate of economic growth ______.
a. through implementation of the Malthusian prediction b. through savings in labor, resources, or capital c. by eliminating the need for human labor d. by being sold to developing foreign countries
Economics