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Under normal conditions (60% probability), Plan A will produce a $31,000 higher return than Plan B. Under tight money conditions (40% probability), Plan A will
Under normal conditions (60% probability), Plan A will produce a $31,000 higher return than Plan B. Under tight money conditions (40% probability), Plan A will produce $112,000 less than Plan B. What is the expected value of return? (Amounts in parentheses indicate negative values.)
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$63,400
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$18,600
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($26,200)
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($44,800)
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