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Suppose you play a game where you pay $100 dollars to participate and have a 50% chance of winning nothing, a 10% chance of winning
Suppose you play a game where you pay $100 dollars to participate and have a 50% chance of winning nothing, a 10% chance of winning $1,100, a 20% chance of winning $600 and a 20% chance of losing $650. What is the expected value of participating in the game? [Hint: Don't forget that you pay $100 to enter the game. If you win nothing, your payoff is not 0 but -$100]. O a. $100 O b. So O c. -$100 O d. $1,050
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