Table 5.4

-Refer to Table 5.4. If outcomes 1 and 2 are equally likely at Job A, then in absolute value:
A) W = X = $10.
B) W = X = $20.
C) W = Y = $100.
D) W = Y = $200.
E) W = Y = $300.

Question

Table 5.4
 
-Refer to Table 5.4. If outcomes 1 and 2 are equally likely at Job A, then in absolute value:
A) W = X = $10. 
B) W = X = $20. 
C) W = Y = $100. 
D) W = Y = $200. 
E) W = Y = $300.

Quizplus · Accepted Answer

W = $10 and X = $10 because the expected value of Job A is $10, and the expected value of outcomes 1 and 2 are both $10.

Table 5.4 -Refer to Table 5.4. If Outcomes 1 and 2 Are