(Scenario: Used-Car Market)Use Scenario: Used-Car Market

Multiple Choice

(Scenario: Used-Car Market) Use Scenario: Used-Car Market.The expected value of a used car is: Scenario: Used-Car Market
In the used-car market,cars of poor quality are called lemons,while cars of good quality are called plums.Suppose that the probability of obtaining a lemon is 60% and the probability of obtaining a plum is 40%.Also,assume that a plum is worth $15,000 and a lemon is worth $3,000.

A) $9,000.
B) $7,800.
C) $18,000.
D) $10,500.