You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random guess and there are five possible answers, what is the expected value of guessing? [the expected value of a random variable that can take on two values (x1, x2) with probabilities (p, 1-p) is E(X)= (p*(x1)) + ((1-p)*(x2)). In this case, p represents the chance of getting a correct answer, while x1 and x2 refer to the possible points]. 0.5 0.25 -0.25 0
You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random guess and there are five possible answers, what is the expected value of guessing? [the expected value of a random variable that can take on two values (x1, x2) with probabilities (p, 1-p) is E(X)= (p*(x1)) + ((1-p)*(x2)). In this case, p represents the chance of getting a correct answer, while x1 and x2 refer to the possible points]. 0.5 0.25 -0.25 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random guess and there are five possible answers, what is the expected value of guessing? [the expected value of a random variable that can take on two values (x1, x2) with probabilities (p, 1-p) is E(X)= (p*(x1)) + ((1-p)*(x2)). In this case, p represents the chance of getting a correct answer, while x1 and x2 refer to the possible points].
0.5
0.25
-0.25
0
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