The Concept of Expected Value Is Useful in Reasoning About

question 4

Multiple Choice

The concept of expected value is useful in reasoning about consequences because:

• A) It gives you a way to compare the consequences of different actions when you aren't sure what the consequences of the actions will be.
• B) It is more mathematically precise than other ways of comparing consequences.
• C) It forces you to convert all consequences into a dollar value, which makes them easy to compare and understand.
• D) It is the only way to compare consequences of different kinds, as in Dan Brock's HUMAN CLONING argument.

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Definitions:

Large Capital Stocks

Shares issued by a company that represent significant equity ownership and investment in the company.

Cash Dividend

A payment made by a corporation out of its earnings to shareholders, usually in the form of cash.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.