Which of the Following Chances Has the Biggest Expected Return

question 35

Multiple Choice

Which of the following chances has the biggest expected return?

• A) a 40% chance of winning $200 and a 60% chance of winning $0
• B) a 100% chance of getting $100
• C) a 50% chance of winning $200, 30% chance of winning $400 and a 20% chance of losing $400
• D) All of the above have the same expected return.

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Definitions:

Noise

Noise refers to any unwanted or disruptive sound that interferes with or diminishes the clarity of intended audio signals.

Lying

Lying is the act of communicating false statements or representations with the intent to deceive.

Distortion

The alteration or misrepresentation of information or perception, leading to inaccuracies or misunderstandings.

Personality

The combination of characteristics or qualities that form an individual's unique character, affecting how they think, feel, and behave.