Which of the Following Chances Has the Biggest Expected Return

question 96

Multiple Choice

Which of the following chances has the biggest expected return?

• A) a 50% chance of winning $1,600 and a 50% chance of winning $0
• B) a 100% chance of getting $800
• C) a 50% chance of winning $1,600, 25% chance of winning $3,200 and a 25% chance of losing $3,200
• D) All of the above have the same expected return.

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