You Are About to Have a Meeting with Your Manager

Multiple Choice

You are about to have a meeting with your manager about a raise in your salary.You are going to request an increase of $5,000, but you believe the probability of success to be only 0.25.You believe there is a 0.25 probability your boss will counter with a $3,000 raise in your salary, and you believe there is a 0.25 probability that your boss will offer a $1,000 raise in your salary.Finally, there is a 0.25 probability that you will receive no increase in your salary.What is the expected value of the outcome of your meeting?

A) $2,250
B) $9,000
C) $6,750
D) $3,000