Use the Following Probability Distribution for a Lottery to Answer

question 28

Multiple Choice

Use the following probability distribution for a lottery to answer this question.
-Given the probability distribution for the lottery above, what is the expected value of this lottery?

• A)$83
• B)$71
• C)$68
• D)$65

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Definitions:

Common Resources

Resources like fish stocks, forests, and clean air, which are non-excludable but rivalrous, leading to potential overuse and depletion.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone and one person’s use does not reduce availability to others.

Nonexcludable

A property of a good or service whereby it is not feasible to prevent people from accessing it, often leading to its consumption without directly paying for it.

Private Good

A product or service that is excludable and rivalrous, meaning its consumption by one individual prevents its use by another.