Find the Expected Value

question 15

Multiple Choice

Find the expected value.
-Mr.Cameron is sponsoring an summer concert.He estimates that he will make $300,000 if it does not rain and make $60,000 if it does rain.The weather bureau predicts the chance of rain is 0.34 for the day of the concert.An insurance company is willing to insure the concert for $150,000 against rain for a premium of $30,000.If he buys this policy,what are his expected earnings from the concert?

• A)$239,400
• B)$180,000
• C)$300,000
• D)$270,000

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Definitions:

Hostile Attribution

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.

Social Information-Processing

Model used to explain idiosyncratic ways of processing social information, such as use of a hostile attributional bias to interpret neutral social cues.

Aggressive Child

A child who exhibits frequent and intense instances of anger, hostility, or violence towards others.

Self-Concepts

The collection of beliefs, perceptions, and evaluations that an individual holds about themselves, encompassing aspects like roles, skills, and attributes.