Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 17.5IP
Related questions
Question
Prospect X = ($4, 0.04 ; $15, 0.05 ; $24, 0.01 ; $38, p)
What is the expected value of prospect X?
(Hint 1: To answer this question, you'll need to first determine the value of "p").
(Hint 2: To determine "p", remember that probabilities sum to 1).
(Note: The answer may not be a whole number; please round to the nearest hundredth)
(Note: The numbers may change between questions, so read carefully)
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