A Better-Than-Fair Gamble Is One in Which

question 14

Multiple Choice

A better-than-fair gamble is one in which

• A) the probability of winning exceeds the probability of losing.
• B) the expected value is positive.
• C) the outcome of winning exceeds the outcome of losing.
• D) the expected value is zero.
• E) the expected value of losing is zero rather than negative.

---

Definitions:

OTC

Over-the-counter, a term used to describe securities trading conducted directly between parties without the involvement of a central exchange.

Total Quality Management

A philosophy of continually lowering costs and improving the provision of services and products to customers.

ISO 9000 Certification

A family of quality management standards designed to help organizations ensure they meet customer and stakeholder needs within statutory and regulatory requirements.

External Failure Costs

Costs incurred when a customer receives a defective product.