Consider the Following Scenario When Answering the Following Questions

question 151

Multiple Choice

Consider the following scenario when answering the following questions:
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 million with a 100 percent probability.
Gamble B: The student will receive $5 million with a 51 percent probability,$10 million with a 25 percent probability,and $0 million (nothing) with a 24 percent probability.
-What is the expected value of Gamble A?

• A) $5 million
• B) $5.01 million
• C) $5.05 million
• D) $10 million
• E) $0 million