Suppose That,in an Experimental Setting,100 Students Are Asked to Choose

question 18

Multiple Choice

Suppose that,in an experimental setting,100 students are asked to choose between Gamble A and Gamble B,where: Gamble A: The student will receive $5,100 with a 70% probability and $200 with a 30% probability.
Gamble B: The student will receive $5,100 with a 50% probability,$200 with a 25% probability,and $0 (nothing) with a 25% probability.
What is the expected value of Gamble B?

• A)EV = 0.7 ($5,100)+ 0.3 ($200)
• B)EV = 0.5 ($5,100)+ 0.25 ($100)+ 0.25 ($25)
• C)EV = 0.5 ($5,100)+ 0.25 ($200)+ 0.25 ($25)
• D)EV = 0.5 ($5,100)+ 0.25 ($200)+ 0.25 ($0)
• E)EV = 0.5 ($2,600)+ 0.25 ($2,600)+ 0.25 ($0)

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Definitions:

Nativists

Individuals or groups advocating for the protection of native inhabitants against the influences and competition of immigrants, often emphasizing anti-immigrant policies and sentiments.

Immigrants

Individuals who move from one country to another with the intention of settling there, often for reasons such as employment, education, or to escape conflict.

Corporate Charters

Official documents issued by a government, granting rights and privileges to a corporation to conduct business.