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    Exam 20: Uncertainty, Risk, and Private Information
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    If There Is a 25% Probability That Joseph Will Earn
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If There Is a 25% Probability That Joseph Will Earn

Question 147

Question 147

Multiple Choice

If there is a 25% probability that Joseph will earn $10 per hour at his job today and a 75% probability that he will earn $20 per hour today,his expected pay per hour is:


A) $10.00.
B) $15.00.
C) $17.50.
D) $20.00.

Correct Answer:

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