Find the Expected Value

question 139

Multiple Choice

Find the expected value.
-Experience shows that a ski lodge will be full (199 guests) if there is a heavy snow fall in December, while only partially full (57 guests) with a light snow fall. What is the expected number of guests if
The probability for a heavy snow fall is .40? Assume that heavy snowfall and light snowfall are the
Only two possibilities.

• A)119.4
• B)142.2
• C)79.6
• D)113.8

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Definitions:

Interest Rate Changes

Interest rate changes refer to the fluctuation of the cost of borrowing money or the return on investment, directly affecting economic activities such as loans and savings.

December 31

The last day of the year, commonly used as the end date for annual financial statements and reports.

Cash Equivalents

Brief-duration investments that can be easily converted into specific cash amounts and are highly liquid.

Human Error

Mistakes made by people, often attributed to factors such as misjudgment, confusion, or oversight.