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nikdorinn [45]
3 years ago
5

Cal has a choice between two gambles. The first gamble offers a 50 percent chance of winning $20 and a 50 percent chance of losi

ng $20. The second gamble offers a 20 percent chance of winning $100 and an 80% chance of losing $20. Which choice has the higher expected value?
Business
1 answer:
Ber [7]3 years ago
4 0

Answer:

The second gamble has the higher expected value. EV = 4

Explanation:

In betting, expected value can be defined as (Amount won per bet * probability of winning) – (Amount lost per bet * probability of losing)

For the first gamble:

EV=(0.5*20) - (0.5*20) = 0

For the second gamble:

EV= (0.2*100) - (0.8*20) = 4

This means that Cal is expected to earn $4 for each $20 waged on the second gamble while he is expected to break even in the first gamble.

Therefore, the second gamble has the higher expected value.

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REY [17]

Answer: 16 S&P 500 futures contracts

Explanation:

The number of contracts can be calculated by:

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= 1.35 × 12,000,000 / ( 250 * 3,983)

= 1.35 × 12,000,000 / ‭995,750‬

= 16 S&P 500 futures contracts

8 0
3 years ago
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Vladimir79 [104]

Answer:

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Explanation:

After the manufacturing of the goods, the process of distribution proceeds. In this process, the goods and services produced are distributed from the producers to the consumers. Transportation, packaging, storage, and advertising are some of the processes that lie between the production and distribution of the products.

According to the given options, the basic question to be asked related to the distribution of the produced goods is option A. All the other three questions belongs to the production stage.

4 0
2 years ago
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Y_Kistochka [10]

Answer:

Product cost= $75

Explanation:

Giving the following information:

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Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and unitary variable overhead:

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2 years ago
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Implied is another type of contract.

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7 0
3 years ago
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1. Look for her toys in her toy chest. She didn’t even know that her brother hid her toys in the first place, so she’ll look for her toys in her toy chest, assuming she wants to play with them after dinner.
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