A Limited Liability Company or LLC is a cross between a corporation and partnership. It basically combines the protections of a corporation and the flexibility of a partnership. For one, members of this kind of company are not liable for debts and they are able to file an informal tax return.

3 0

3 years ago

Gambler is deciding whether or not to take a bet. she must pay $40 to take the bet, but if she wins, she willprofit$225.theproba

Vesnalui [34]

Expected value of the bet is
the sum of the products of value of outcome and its probability,
less the amount paid to place the bet.

Outcomes value probability
win 225 1/4
lose 0 3/4
cost of bet = 40

So expected value of bet
E[X]=225*(1/4)+0*(3/4)-40
=56.25-40
=16.25

This means that in the long run, gambler will win, since the expected value is positive. (does NOT mean she will win in the next bet!)

3 0

4 years ago