1. To find the expected value of a deal, you identify all possible outcomes of the deal...

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1. To find the expected value of a deal, you identify all possible outcomes of the deal and find the payoffs associated with those outcomes. Expected value is the weighted average of those payoffs where the weights are the probability of each payoff occurring.

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Principles Of Microeconomics

ISBN: 9780691150093

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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