Exam 17: Making Decisions With Uncertainty

Four possibilities have probabilities 0.4,0.2,0.2 and 0.2 and values $10,$20,$30,and $40 respectively.The expected value is:

Five possibilities are equally likely and have payoffs of $2,$4,$6,$8,and $10.The expected value is:

You can invest in either project A or B.Project A has value $150 with probability 0.1 and value $75 with probability 0.9.Project B has value $110 with probability 0.2 and value $65 with probability 0.8.