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Consider Two Options: (A) You Receive a Guaranteed Payment of $100;

Question 84

Multiple Choice

Consider two options: (A) you receive a guaranteed payment of $100; (B) a coin is tossed and if heads comes up, you win nothing; if tails comes up, you win $200. The expected payoff for option B is:


A) $200
B) $100
C) $300
D) $75
E) There is not enough information to answer the question.

Correct Answer:

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