Suppose Chris Is Offered the Following Gamble:  with Probability 0

question 21

Multiple Choice

Suppose Chris is offered the following gamble:  with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. The expected value of this gamble is found by solving:

• A)0.1 × ($90 - $60)+ 0.4 × ($50 - $60)
• B)0.1 × $90 + 0.4 × $50
• C)0.1 × $90 + 0.4 × $50 - 0.5 × $60
• D)($90 + $50 - $60)/3

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Definitions:

Effectiveness Criteria

Standards or benchmarks used to evaluate the success or impact of a program, project, or intervention based on the achievement of its objectives.

Average Completion Time

is a metric used to determine the average duration it takes to complete a set of tasks or projects, often used in scheduling and performance assessments.

Utilization

Measures how effectively a company or production unit is using its resources or capacity to generate output.

Forward Scheduling

Scheduling that begins the schedule as soon as the requirements are known.