Sarah Buys Little Stuffed Animals for $5 Each

Multiple Choice

Sarah buys little stuffed animals for $5 each.They come in different varieties.If the producer stops making (retires) a certain variety,a stuffed animal of that variety will be worth $100; otherwise it is worth $0.There is 50% chance that any variety will be retired.What is the value to Sarah of knowing ahead of time whether a variety will be retired?

A) $50
B) $5
C) $2.50
D) $0