Consider a Lottery with Four Possible Outcomes, A, B, C $P ( A ) = 0.40$

question 35

Multiple Choice

Consider a lottery with four possible outcomes, A, B, C, and D. The associated payoffs are: A - $10, B - $30, C - $70, and D - $150. The probabilities are $P ( A ) = 0.40$ , $P ( B ) = 0.20$ , $P ( C ) = 0.30$ , and $P ( D ) = 0.10$ . The variance of this lottery is

• A) 912
• B) 1,824
• C) 1,618
• D) 3,326

---

Definitions:

Cultures

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Oedipus Complex

In Freudian theory, the desire young boys have to get rid of their father and take his place in their mother’s affections.

Electra Complex

In Freudian theory, the process by which young girls blame their mother for their “castrated” condition, transfer their love to their father, and compete with their mother for their father’s affection.

Primary Anxiety

a fundamental form of anxiety that is not a response to a specific stressor but rather a general sense of unease or dread.