If You Have a 50-50 Chance of Winning $100 or Losing

question 114

Multiple Choice

If you have a 50-50 chance of winning $100 or losing $100,your expected value of this gamble is

• A) $50.
• B) -$50.
• C) $100.
• D) -$100.
• E) $0.

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Definitions:

Contingent

Dependent on or conditioned by something else; subject to chance or variability.

Formula

A mathematical relationship or rule expressed in symbols, typically used to solve problems or to define a process.

Truth Table

A mathematical table used in logic to determine the truth values of a logical expression based on the truth values of its inputs.

Argument

A series of statements or reasons made to persuade others that an action or idea is right or wrong.