Lois Is Considering Buying a New Bicycle for $200

question 24

Multiple Choice

Lois is considering buying a new bicycle for $200. It has a 20% chance of breaking down in the next year. What is the expected value in terms of repair cost for this purchase?

• A) $240
• B) $400
• C) $20
• D) $200
• E) $40

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Definitions:

Formed

The process of creating or establishing something, often referring to the formation of a legal or structured entity such as a company or agreement.

Advantages and Disadvantages

A consideration of the positive and negative aspects of a particular decision, action, or strategy.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, under certain conditions.

Vicarious Liability

A legal principle that holds one party responsible for the actions of another under certain conditions, typically within employment contexts.