A Lottery Game Pays $500 with

question 2

Multiple Choice

A lottery game pays $500 with .001 probability and $0 otherwise.The variance of the payout is

• A) 15.8.
• B) 249.50.
• C) 249.75.
• D) 499.

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Definitions:

Structurally Unemployed

individuals who are unemployed due to structural changes in the economy that make their skills or industries obsolete.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.

Economy Expanding

A phase where a nation's economic activity is growing, marked by increased production, employment, and consumption.

Recessions

Economic downturns marked by decreasing industrial production, employment, and sales, often lasting from a few months to more than a year.