Question
Jaime has a choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,00 0and a 0.5 probability of$30,000.
Jaime has a choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,00 0and a 0.5 probability of$30,000. The expected value of the gamble:
a.is less than $20,000
b.is $20,0000
c.is greater than $20,000
d.cannot be determined
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
