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On Any Given Day,a Salesman Can Earn $0 with a 40

Question 22

Multiple Choice

On any given day,a salesman can earn $0 with a 40% probability,$100 with a 40% probability,or $300 with a 20% probability.His expected earnings equal


A) $0.
B) $100 because that is the most likely outcome.
C) $100 because that is what he will earn on average.
D) $200 because that is what he will earn on average.

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