Jude owns a house worth $250,000 in an area that is prone to tornadoes. Suppose there is a 5 percent chance during the next year that Jude's house will incur $50,000 of damage from a tornado and a 1 percent chance that his home will be completely destroyed by a tornado. What is the expected value of Jude's house next year?
A)$240,000
B)$245,000
C)$247,500
D)$230,000

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The Answer of Jude owns a house worth $250,000 in an area that is prone to tornadoes. Suppose there is a 5 percent chance during the next year that Jude's house will incur $50,000 of damage from a tornado and a 1 percent chance that his home will be completely destroyed by a tornado. What is the expected value of Jude's house next year?
A)$240,000
B)$245,000
C)$247,500
D)$230,000

Jude Owns a House Worth $250,000 in an Area That