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:

Endosperm

A material formed within the seeds of the majority of flowering plants after fertilization, providing nutrition to the growing embryo.

Ovary Wall

The protective outer layer of the ovary in female organisms, enclosing the ovules or eggs.

Carpels

The female reproductive organs of a flower, comprising the stigma, style, and ovary, which may occur singly or fused together to form a compound ovary.