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Consider a Lottery with Four Equally Likely Outcomes,A,B,C,and D

Question 39

Multiple Choice

Consider a lottery with four equally likely outcomes,A,B,C,and D.The associated payoffs are: A - $10,B - $30,C - $70,and D - $150.The expected value of this lottery is


A) $30
B) $65
C) $130
D) $260

Correct Answer:

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