Simplistic Inc

question 104

Multiple Choice

Simplistic Inc.has a project that costs $800,000.It has a 70% chance of a $1,500,000 payoff and a 30% chance of a $50,000 payoff.What is the expected payoff and the expected profit or loss from the new project?

• A)The expected payoff is $1,065,000,and the expected gain is $265,000.
• B)The expected payoff is $700,000,and the expected loss is $100,000.
• C)The expected payoff is $600,000,and the expected gain is $0.
• D)The expected payoff is $500,000,and the expected loss is $100,000.

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Definitions:

Functional Encoding

A process in cognitive psychology that involves the transformation of sensory input into a meaningful experience or memory.

C-major Chord

A musical chord consisting of the notes C, E, and G, known for its consonant and harmonious sound.

Hearing

The ability to perceive sound by detecting vibrations through an organ such as the ear.

Synesthesia

A condition in which one sense is simultaneously perceived as if by one or more additional senses, such as seeing colors when hearing music.