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Inga [223]
4 years ago
9

You have won a game and can now choose between two options: option A: a gift of $10, guaranteed option B: a chance to keep playi

ng to win $8000 with a probability of 0.001, otherwise winning only $2 (a consolation prize for having passed up the $10). Choosing option A has an expectation of $10. What is the expectation of option B
Business
2 answers:
Len [333]4 years ago
7 0

Answer:

$10

Explanation:

Lets assume we choice or go for option B, we will have a 0.999 probability of winning $2, and also we will have 0.001 probability of winning the $800. This is to say, expectation value B will be given as;

E(B) = 0.999×2+0.001×800

E(B) = $9.80

By approximating, we have expectation of B to be $10

Delvig [45]4 years ago
5 0

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:

E(B) = 0.001*\$8000+0.999*\$2\\E(B)=\$9.998

Rounding to the nearest cent, the expectation of option B is also $10.

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3 years ago
William pays his $500 premium every 6 months for automobile insurance with collision coverage. His deductible is $750. William c
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I believe that William's deductible is only for damage to his car and that he won't have to pay out of pocket for the other car but will have to pay higher premiums in the future due to his being at fault in the accident at least that is what happened to me recently and it worked out that way according to the automobile insurance in British Columbia, Canada.
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3 years ago
project x has an initial cost of $20,000 and a cash inflow of $25,000 in year 3. project y costs $40,700 and has cash flows of $
Helen [10]

Project X has a $20,000 start-up cost and a $25,000 cash inflow in year 3. Project Y has a $40,700 cost and generates cash flows of $12,000, $25,000, and $10,000 over the course of its first three years. The projects are mutually exclusive, and the discount rate is 6%. You should approve the project in the end based on the irrs and npv of each individual project as well as your own assessment of those factors. X;Y:Y.

Start-up costs are the costs a business spent or incurred to establish an active trade or business, or to research establishing or acquiring an active trade or business. Start-up costs are sums paid or expended in connection with a current profitable activity that is intended to generate money prior to the activity becoming a fully operational trade or business. Equipment, incorporation fees, insurance, wages, and taxes are just a few of the startup costs. Although startup costs will differ depending on your business's industry and type, an expense for one firm might not be applicable to another. It helps you effectively launch your firm and maintain profitability after your doors are open to understand your expenses and how you will manage them.

Learn more about startup costs here

brainly.com/question/10168576

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3 0
2 years ago
Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
yawa3891 [41]

Answer:

Relevant Range

Explanation:

The production range between 120000 and 150000 is called the "Relevant range".

This production range is called Relevant range because the expected fixed cost will not vary if the production is in the range 120000 to 150000.

Also, the for increase in production more than 150000 will lead to the extra cost or if the production is less than 120000 the company may need to reduce its fixed cost.

6 0
3 years ago
BRAINLIEST REWARD
iren2701 [21]
1, 2, 3 I think would all be things she lost. Hope this helps!
4 0
3 years ago
Read 2 more answers
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