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

---

Definitions:

Adolescence

A developmental stage of life that occurs between childhood and adulthood, typically characterized by significant physical, psychological, and social changes.

Life Cycle

The series of changes an organism undergoes from the beginning of its life until its death, often applied metaphorically to describe products or businesses.

Age Cohorts

Groups of individuals who are similar in age and share specific types of experiences at certain stages of life.

United States

A North American country composed of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence on global politics, economy, and culture.