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Question
Consider the following scenario when answering the following questions:
Suppose that, in an experimental setting, 100 students are asked to choose between Gamble A and Gamble B, where:
Gamble A: The student will receive $5 million with a 100 percent probability.
Gamble B: The student will receive $5 million with a 51 percent probability, $10 million with a 25 percent probability, and $0 million (nothing) with a 24 percent probability.
What is the expected value of Gamble A?
a. $5 million
b. $5.01 million
c. $5.05 million
d. $10 million
e. $0 million
Answer
This answer is hidden. It contains 61 characters.
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