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Written assignment (10 points) o Mark has $500 of cash. Use Expected Value Theory of normative approach, to make a decision between buying lottery
Written assignment (10 points) o Mark has $500 of cash. Use Expected Value Theory of normative approach, to make a decision between buying lottery or bank saving (similar to the example we talked in class, Set p(winning lottery)= 1*10^-9, V (winning lottery)=$1 million, V(interest only)=$50. o expected value is $50 o p*V=10^-9*10^6 = 10^-3=$0.001
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Numerical Methods For Engineers
Authors: Steven C. Chapra, Raymond P. Canale
5th Edition
978-0071244299, 0071244298
