Multiple Choice
Obi-Wan is considering whether to buy a lightsaber. With probability 0.50 he will value the lightsaber at $4,000, and with probability 0.50 he will value it at $1,000. If new lightsabers sell for $2,500, then buying a new lightsaber is a:
A) fair gamble.
B) better-than-fair gamble.
C) less-than-fair gamble.
D) less-than-fair gamble if Obi-Wan risk neutral.
Correct Answer:
Verified
Correct Answer:
Verified
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