​Four Possibilities Have Probabilities 0

question 70

Multiple Choice

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

• A)​$22
• B)$24
• C)$26
• D)​$28

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Definitions:

Cumulative

Describes items or amounts that increase over time through successive additions, often used in the context of dividends that are accrued if not paid in a given period.

Preferred Stockholders

Investors who own preferred shares in a company, which have a higher claim on assets and earnings than common stock, often receiving dividends before common stockholders.

Common Stockholders

Individuals or entities that own common stock in a corporation, granting them rights to dividends and voting in corporate matters.

Cumulative

This term refers to the total amount accumulated over a period of time, often used in the context of dividends or other figures that add up over multiple periods.