Which of the Following Best Explains the Idea of the Expected

question 36

Multiple Choice

Which of the following best explains the idea of the expected value of the consequences of a risky action?

• A) The unweighted average of the value of each possible outcome, counting each outcome as equally likely.
• B) The weighted average of the value of each possible outcome, where each value is weighted by the probability of the outcome occurring.
• C) The value of the outcome that is most likely to occur, based on objective probabilities.
• D) The average of the value of the outcome that you expect to occur.

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Definitions:

1914

Generally references the year notable for the start of World War I, but without additional context, it doesn't apply to a specific key-term related to law or policy.

Enacted

Made into law by official legislative action.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry.

Vertical Merger

A business integration strategy where companies within the same supply chain but at different stages of production merge.