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Suppose a company is deciding whether to invest in a project. It has a choice of choosing: 1. Project A which produces $350 revenue with
Suppose a company is deciding whether to invest in a project. It has a choice of choosing:
1. Project A which produces $350 revenue with certainty
2. Project B which produces $600 revenue with 1/2 probability and $0 with 1/2 probability
The expected value for project B is
A)$950
B)$300
C)$350
D)$4
I know the answer is 4$ but how do you get it.
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