Use the Following to Answer Question

question 18

Multiple Choice

Use the following to answer question:
Table 14.7
Benefit Payout
Probability of Payout
-$2 million
0.3
1 million
0.4
4 million
0.3
-(Table 14.7) What is the expected value of the benefit payout?

• A) $1.33 million
• B) $1 million
• C) $2.2 million
• D) $2.5 million