1. Consider the following scenario when answering the following questions:

Suppose that in an experimental setting, 100 students are asked to choose between Gamble A and Gamble B, where:

Gamble A: The student will receive $50 with a 70 percent probability and $100with a 30 percentprobability.

Gamble B: The student will receive $50 with a 50 percent probability, $200 with a 25 percent probability, and $0 (nothing) with a 25 percent probability.

What is the expected value of Gamble A?

a.$50

b.$0

c.$65

d.$45

e.$100