Whenever the Outcome of an Event Has a Number of Different

question 59

True/False

Whenever the outcome of an event has a number of different possibilities that have equal probability of occurrence, then the expected value of the outcome is equal to the simple average of the individual events.

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Definitions:

Firm

An organization or business entity engaged in commercial, industrial, or professional activities, typically with the aim of generating profit.

Normative

Relating to an evaluative or prescriptive standard or principle, often regarding moral or ethical considerations.

Value Judgments

assessments based on personal views about the worth, beauty, or morality of something, rather than on measurable criteria.

Positive

Describes an approach or statement that is based on factual assertions or affirmative actions, often used in the context of economic analysis.