​Four Possibilities Have Probabilities 0

question 49

Multiple Choice

​Four possibilities have probabilities 0.4,0.2,0.2 and 0.2 and values $10,$20,$30,and $40 respectively.The expected value is:

• A)​$22
• B)$24
• C)$26
• D)​$28

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.

Production Level

The quantity of goods a company produces within a specified period, usually in relation to its capacity.

Cost-Volume-Profit Analysis

A financial analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Future Costs

Expected or projected expenses that will be incurred in the future.