The Possible Returns and Associated Probabilities of Two Independent Projects

question 21

Multiple Choice

The possible returns and associated probabilities of two independent projects are as follows: 11ec37eb_8bb0_1edc_97b9_f397002659f4__00 It has been decided that both projects are to be launched. Which TWO of the following statements are correct? (Choose two.)

• A) The expected value of the total return is $41,500 gain.
• B) The probability of the total return being a loss is 0.10.
• C) The probability of making a total return of exactly $5,000 gain is 0.02.
• D) The probability of the total return being a gain is less than 1.00.
• E) The expected value of the total return is $40,000 gain.

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Definitions:

Acetylcholine

A neurotransmitter in the nervous system that plays a critical role in muscle contraction and the modulation of alertness, memory, and learning.

Norepinephrine

A neurotransmitter and hormone important in the body's response to stress, affecting attention, heart rate, and other physiological functions.

Histamine

An organic nitrogenous compound involved in local immune responses, as well as regulating physiological functions in the gut and acting as a neurotransmitter.

Threat Simulation Theory

A theory suggesting that dreaming serves an evolutionary purpose of practicing how to behave in potentially dangerous situations.