In a Game of Chance, the Probability of Winning a $50

question 2

Multiple Choice

In a game of chance, the probability of winning a $50 is 40 per cent and the probability of losing a $50 prize is 60 per cent. What is the expected value of a prize in the game?

• A) -$10
• B) $0
• C) $10
• D) $25

---

Definitions:

Substitutes

Products that serve similar purposes. An increase in the price of one will cause an increase in demand for the other (examples are hamburgers and tacos, butter and margarine, Chevrolets and Fords).

Cable TV

is a system of delivering television programming to consumers via radio frequency signals transmitted through coaxial cables.

Satellite TV

A television system that delivers programming to viewers by broadcasting from a communications satellite orbiting the Earth directly to the viewer's location.

Stock Market

This term refers to the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses, including securities listed on public stock exchanges.