Use the Information Below to Answer the Following Questions)

question 1

Multiple Choice

Use the information below to answer the following questions)
Misty Inc. launches a new range of perfumes for men and women. The probability of high consumer demand for the product is 0.6 and low consumer demand is 0.4. The probability of a favorable survey response given high consumer demand is 0.9 and the probability of a favorable survey response given low consumer demand is 0.2.
-Greg is indifferent between receiving $2,000, and taking a chance at $2,500 with probability 0.7 and losing $1200 with probability 0.5. What is the expected value of this gamble?

• A) $ 1,150
• B) $ 1,800
• C) $ 1,460
• D) $ 2,045

---

Definitions:

Psychosis Spectrum Disorders

A range of mental health disorders characterized by a disconnection from reality, including schizophrenia and bipolar disorder.

Learning Disabilities

A group of disorders characterized by inadequate development of specific academic, language, and speech skills.

Social Skills

The abilities used by individuals to interact and communicate with one another effectively, including verbal and non-verbal communication.

Remediation

The process of providing corrective education or training to improve skills in individuals who are lacking in certain areas.