Consider the Following Game

question 2

Multiple Choice

Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?

• A) -$6
• B) $0
• C) $6
• D) $30

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Definitions:

Subsidiary Company

A company that is controlled by another company, known as the parent company or holding company.

Turnkey Operation

A business arrangement where a project or business is delivered in a complete and operational state.

Oil Refinery

An industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and heating oils.

Licensing

A business arrangement in which one company allows another to use its trademark, patent, software, or other intellectual property for a fee or royalty.