Suppose Mo is considering whether to see Zombie Revenge III at her local movie theater. Tickets cost $12 each, but Mo isn't sure how much she's going to like the movie. There's a 40 percent chance she'll get $20 worth of enjoyment from seeing the movie, and there's a 60 percent chance she'll only get $10 worth of enjoyment from seeing the movie. Mo's expected value of seeing the movie is:
A)$20.
B)$14.
C)$4.
D)$2.

Question

Quizplus · Accepted Answer

The expected value of seeing the movie is $2 = (0.40)($20)+ (0.60)($10)- $12.

Suppose Mo Is Considering Whether to See Zombie Revenge III