Consider the Following Scenario to Answer the Questions That Follow

question 73

Multiple Choice

Consider the following scenario to answer the questions that follow.
Ivett and Brenda are considering playing a game called Twenties Versus Fifties. In this game, Ivett will place a $20 bill on the table, and Brenda will place a $50 bill on the table. Both players will then toss a fair coin. If both Ivett and Brenda toss heads or if they both toss tails, Ivett wins the $70 on the table. If one woman tosses heads and the other tosses tails, Brenda wins the $70 on the table.
-Which of the following is the formula that Ivett would use to compute the expected value (EV) of the game from her perspective?

• A) EV = 0.5 × ($20) + 0.5 × ($50)
• B) EV = 0.5 × (-$20) + 0.5 × ($50)
• C) EV = 0.5 × ($20) + 0.5 × (-$50)
• D) EV = 0.5 × (-$70) + 0.5 × ($50)
• E) EV = 0.5 × ($70) + 0.5 × ($50)

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Definitions:

Indians

Primarily refers to the indigenous peoples of the Americas; also used in a broader sense to denote the native inhabitants of various regions globally.

Conquistadores

Spanish explorers and warriors who led military expeditions in the Americas during the 16th century, contributing to the Spanish colonization of the region.

New World

A term historically referring to the Americas, encompassing both North and South America, discovered by European explorers.

Reconquista

The “reconquest” of Spain from the Moors completed by King Ferdinand and Queen Isabella in 1492.