Consider the Following Scenario to Answer the Questions That Follow

question 77

Multiple Choice

Consider the following scenario to answer the questions that follow.
Suppose that in an experimental setting, 100 students are asked to choose between Gamble A and Gamble B, where:
Gamble A: The student will receive $50 with a 70% probability and $100 with a 30% probability.
Gamble B: The student will receive $50 with a 50% probability, $200 with a 25% probability, and $0 (nothing) with a 25% probability.
-Which of the following formulas shows the correct formula for the expected value (EV) of Gamble B?

• A) EV = 0.5 × ($50) + 0.25 × ($25)
• B) EV = 0.5 × ($50) + 0.25 × ($100) + 0.25 × ($250)
• C) EV = 0.5 × ($50) + 0.5 × ($200)
• D) EV = 0.5 × ($50) + 0.25 × ($200)
• E) EV = 0.25 × ($50) + 0.25 × ($200)

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Definitions:

Wrist Blood Pressure Monitor

A portable device used to measure blood pressure, designed to be worn on the wrist for convenience.

Home

A place where an individual lives, often considered a place of residence or domicile.

Cuff

A band or strap that encircles the arm or leg to measure blood pressure or secure a garment.

Orthostatic Hypotension

A form of low blood pressure that happens when standing up from sitting or lying down, which can lead to dizziness or fainting.