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Vesnalui [34]
3 years ago
6

You must pick one of two​ wagers, for an outcome based on flipping a fair coin. 1. You win ​$440 if it comes up heads and lose ​

$110 if it comes up tails. 2. You win ​$770 if it comes up heads and lose ​$220 if it comes up tails. Find the expected outcome for each wager. Which wager is better in this​ sense?
Business
1 answer:
UkoKoshka [18]3 years ago
4 0

Answer:

See Below

Explanation:

Expected value is the sum of the products of the probability and payoff of each.

<u>Wager 1:</u>

probability of heads and tails, both is 0.5

Win = 440

Loose = 110

So,

Expected Value = 440(0.5) + (-110)(0.5) = 220 - 55 = $165

<u>Wager 2:</u>

Similar to wager 1

Win = 770

Loose = 220

So,

Expected value = 770(0.5) + (-220)(0.5) = 385 - 110 = $275

2nd wager is better, in this sense.

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<h3>What is Gross domestic product?</h3>

Gross domestic product refer to the the overall monetary or market value of all thecompleted goods and services that is manufactured within a specific country at a period of time.

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Learn more on Gross domestic product from the link below.

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Explanation:

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Accounting about Stockholders' Equity? 1. Common stockholders usually have all of the following rights except: a) To receive div
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Hope this helped you out

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At Patio Products International, each supervisor receives direction and information from the managers above them and passes that
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At the end of a full year mary garber had $6248.95 in her saving account. If the rate of interest was 12.253%, how much money di
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Answer:

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Explanation:

to determine the amount of money that Mary had in her account at the beginning of the year we can use the resent value formula:

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where:

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