The lottery's anticipated worth is $80.
Given that,
The probability of receiving $125 is 0.25; the likelihood of receiving $100 is 0.3; and the likelihood of receiving $50 is 0.45.
A) EV=125*.2+100*.3+50*.5=$80
The lottery's anticipated worth is $80.
The expected value is obtained by multiplying each result by its likelihood.
The expected value of the lottery is then calculated by adding up all of these.
This is what we have: ;;
125(0.2) + 100(0.3) + 50(0.5) (0.5)
= 25 + 30 + 25 = $80
B) This is the formula for variance is shown in figure :
So, we can calculate the variance as follows:
.2*(125-80)^2+.3*(100-80)^2+.5*(50-80)^2=975
C) A risk-neutral person would pay $80 or less to play the lottery.
To learn more about probability click here:
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Answer:
$2,400
Step-by-step explanation:
We get 10% of 4,000 by dividing 4,000 by 10.
4,000 ÷ 10 = 400
To get the amount that 4,000 is subtracted by we multiply 400 by 4.
400 × 4 = 1,600
To get the answer we subtract 4,000 by 1,600.
4,000 - 1,600 = 2,400
Hope I helped!
She ate two apples. Six apples would be left if you subtracted 2 from 8.