Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost Variable Cost Per Unit A) I
1 answer:
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Answer:
$10
Explanation:
By choosing option B, you have a 0.001 chance of winning $8000, and a 0.999 chance of winning the $2 consolation prize. Therefore, the expected value of option B is given by:
Rounding to the nearest cent, the expectation of option B is also $10.