What is the expected value of a $100 bet on a flip of a fair coin, where heads pays double and tails pays zero?
What will be an ideal response?
The expected value of this event is calculated as E.V. = PH (H) + PT (T); where H is the payoff from the coin turning up heads and T is the payoff if the coin turns up tails. PH and PT are the probabilities of the coin turning up heads or tails respectively. Substituting actual values in out formula reveals: E.V. = 0.5 ($200) + 0.5($0) = $100
Economics
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A firm's demand curve for labor coincides with the:
A. marginal cost curve. B. average cost curve. C. marginal revenue curve. D. marginal revenue product curve.
Economics