You Pick a Card from a Deck

question 120

Multiple Choice

You pick a card from a deck.If you get a club,you win $90.If not,you get to draw again (after replacing the first card) .If you get a club the second time,you win $30.If not,you lose. Find the expected amount you will win.

• A)$30.00
• B)$45.00
• C)$32.34
• D)$36.56
• E)$28.13

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Definitions:

Vertical Summation

A method used in economics to aggregate individual demand curves to find total market demand for a good.

Private Good

A product or service that is excludable and rival in consumption, meaning its use by one individual prevents its use by another.

Public Good

Refers to commodities or services that provide benefits to all members of society and whose use by one individual does not diminish the availability to others.

Public Good

Goods that once provided to one consumer, can be accessed by others without additional costs, benefiting the entire community.