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Question 4 Yet another colleague of yours was also asked to look at the proposal and has computed that the expected (average) profit of the

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Question 4 Yet another colleague of yours was also asked to look at the proposal and has computed that the expected (average) profit of the proposal is zero, and therefore claims that the proposal is not worth it. He shows you the following calculation: Expected Profit = -50 + 0.5*(-150) + 0.5*(- 350) + 0.5*(500) + 0.5*(100) = 0 We have decided to not accept the proposal made by the colleague, and we should not follow his recommendation. The equation from the colleague is incorrect and incomplete since the

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