The Connotation "Expected Value" or "Expected Gain" from Playing Roulette

question 4

Multiple Choice

The connotation "expected value" or "expected gain" from playing roulette at a casino means

• A)the amount you expect to "gain" on a single play.
• B)the amount you expect to "gain" in the long run over many plays.
• C)the amount you need to "break even" over many plays.
• D)the amount you should expect to gain if you are lucky.

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Definitions:

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital, in the production of goods and services.

Marginal Cost

Marginal cost refers to the increase in total cost resulting from producing one additional unit of a good or service.

Total Revenues

The overall amount of income generated from the sale of goods or services before any expenses are subtracted.

Total Costs

The sum of all expenses (fixed and variable) incurred in the production of goods or services.