Consider a Lottery with Four Possible Outcomes, A, B, C $P ( A ) = 0.40$

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

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