Which of the Following Chances Has the Biggest Expected Return

question 97

Multiple Choice

Which of the following chances has the biggest expected return?

• A) a 60% chance of winning $2,400 and a 40% chance of winning $0
• B) a 100% chance of getting $1,200
• C) a 50% chance of winning $1,200, 20% chance of winning $2,400 and a 30% chance of losing $2,400
• D) All of the above have the same expected return.

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Definitions:

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit and loss distribution among business partners.

Task Overload

Occurs when the volume or difficulty of tasks assigned exceeds an individual's capacity to perform them effectively, leading to stress or burnout.

Work Expected

The anticipated amount of work or output that is expected from a process, project, or employee within a given timeframe.

Employee

An individual who works part-time or full-time under a contract of employment, providing labor to an employer in return for wages or salary.