Scholarship A is worth $1000and costs $10 to apply. Scholarship B is worth $5000and costs $25 to apply. You have a5% chance of receiving Scholarship A and a2% chance of receiving the Scholarship B.

(a) What is your expected value for Scholarship A?

$

(b) What is your expected value for Scholarship B?

$

(c) You can only apply for one scholarship. Which one should you choose?

Scholarship A

Scholarship B