Consider a Lottery with Four Possible Outcomes $A , B , C$

Multiple Choice

Consider a lottery with four possible outcomes, $A , B , C$ , and D. The associated payoffs are: $\$ 10$ , $\$ 30 , \$ 70$ , and $\$ 150$ , respectively. The probabilities are $P ( A ) = 0.40 , P ( B ) = 0.20 , P ( C ) =$ $0.30$ , and $P ( D ) = 0.10$ . The expected value of this lottery is what?

A) $\$ 23$
B) $\$ 46$
C) $\$ 65$
D) $\$ 260$