Refer to the Following Table Showing the Probability Distribution of Payoffs

question 39

Multiple Choice

Refer to the following table showing the probability distribution of payoffs from an activity.
$$\begin{array} { c c c } \text { Units } & \text { Payaff } & \text { Prabability } \\\hline 1 & \$ 30 & 10 \% \\2 & 40 & 25 \% \\3 & 60 & 30 \% \\4 & 50 & 20 \% \\5 & 10 & 15 \%\end{array}$$
-What is the expected value?

• A) 16.5
• B) 28
• C) 36.5
• D) 42.5
• E) 49

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Definitions:

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.

Limited Liability

is a legal structure where the owners' personal liability is restricted to the amount they invested in the business, protecting personal assets from business debts and obligations.

Comingled

Mixed together without distinction; often refers to the mixing of funds belonging to one party with those of another, especially in a fiduciary relationship.