Consider a Lottery with Four Equally Likely Outcomes, A, B

question 51

Multiple Choice

Consider a lottery with four equally likely outcomes, A, B, C, and D. The associated payoffs are: $10, $30, $70, and $150, respectively. The variance of this lottery is

• A) 2,875
• B) 5,750
• C) 8,625
• D) 11,500

---

Definitions:

Journal Entries

Records of financial transactions in the accounting system, ensuring every movement of funds is documented.

Office Supplies

Items and materials used in offices for daily operations, including paper, pens, and other stationery.

Miscellaneous Expense

General ledger accounts for expenses that are not sufficiently large or regular enough to be allocated to specific expense categories.

Bank Statement

A monthly document provided by a bank detailing all transactions in a customer's account for a given period.