Joe Is Contemplating a Job Where, with Probability 0

question 4

Multiple Choice

Joe is contemplating a job where, with probability 0.6, he will make $100,000 and with probability 0.4 he will make $30,000. What is Joe's expected income from taking the job?

• A) $12,000
• B) $60,000
• C) $72,000
• D) $90,000

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Definitions:

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and vehicles.

Equity Funds

Investment funds that primarily invest in stocks, aiming to provide returns through capital gains or dividends.

Personal Funds

Money that individuals have saved or accumulated, which can be used for investments, starting a business, or other personal uses.

Venture Capital Firms

Companies that invest in start-ups and small businesses with high growth potential in exchange for equity, or partial ownership, of the company.