The Expected Value of a Gamble Is the

question 144

Multiple Choice

The expected value of a gamble is the

• A) value of the best outcome.
• B) sum of the possible outcomes divided by the number of possible outcomes.
• C) value one hopes will occur.
• D) value of the worst outcome.
• E) sum of the possible outcomes multiplied by the probability of the possible outcomes.

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Definitions:

Total Credits

The sum of all credit entries recorded in the accounting books of a business, reflecting the total value of transactions decreasing assets or increasing liabilities and equity.

Beginning Balance

The sum of funds in an account at the beginning of a new accounting cycle, transferred from the conclusion of the last period.

Chronological Record

A method of recording events or transactions in the order of their occurrence in time.

Debits and Credits

Accounting entries that either increase or decrease accounts on a company's balance sheet and income statement.