Scenario 5.4:
Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below:
The expected value of the investment is $25. Although all the information is correct, information is missing.
-Refer to Scenario 5.4. What is the payoff of outcome C?
A) -150
B) 0
C) 25
D) 100
E) 150

Question

Scenario 5.4:
Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below:
  The expected value of the investment is $25. Although all the information is correct, information is missing.
-Refer to Scenario 5.4. What is the payoff of outcome C?
A) -150 
B) 0 
C) 25 
D) 100 
E) 150

Quizplus · Accepted Answer

Outcome C has a payoff of -150.

Scenario 5.4: Suppose an Individual Is Considering an Investment in Which There