Use the Following to Answer Questions

question 13

Multiple Choice

Use the following to answer questions :
Scenario: Used-Car Market
In the used-car market,cars of poor quality are called lemons,whereas cars of good quality are called plums.Suppose that the probability of obtaining a lemon is 60% and the probability of obtaining a plum is 40%.Also,assume that a plum is worth $15 000 and a lemon is worth $3 000.
-(Scenario: Used-Car Market) Use Scenario: Used-Car Market.The expected value of a used car is:

• A) $9 000.
• B) $7 800.
• C) $18 000.
• D) $10 500.

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Definitions:

Power Motive

Wanting to have an impact on others.

Power Motive

The drive to influence, control, or have an impact on others, often studied in the context of personality and social psychology.

Heart Disease

a range of conditions that affect the heart, including blood vessel diseases, heart rhythm problems, and heart defects among others.

Optimistic Explanatory Style

Believing negative events are temporary and specific.