Which of the Following Chances Has the Biggest Expected Return

question 72

Multiple Choice

Which of the following chances has the biggest expected return?

• A) a 100% chance of getting $5,000
• B) a 40% chance of winning $10,000 and a 60% chance of winning $0
• C) a 50% chance of winning $10,000, 30% chance of winning $20,000 and a 20% chance of losing $20,000
• D) All of the above have the same expected return.

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Definitions:

Transportation Cost

The expenses associated with moving goods from one location to another, including fuel, labor, and maintenance costs.

Carriers

Companies that provide transportation services for goods, including freight companies, airlines, and shipping lines.

Customers

Individuals or entities that purchase goods or services from a company.

Direct Shipping Network

A direct shipping network is a distribution model that ships products directly from suppliers to consumers, eliminating intermediaries.