Apply the expected-value criterion to choose between these investments.
Investment A has possible outcomes: $100,000 (50% chance), $40,000 (30% chance), and $50,000 (20% chance). Investment B has possible outcomes: $150,000, $60,000, $20,000, and $80,000 with each outcome equally likely.

Question

Quizplus · Accepted Answer

The Answer of Apply the expected-value criterion to choose between these investments.
Investment A has possible outcomes: $100,000 (50% chance), $40,000 (30% chance), and $50,000 (20% chance). Investment B has possible outcomes: $150,000, $60,000, $20,000, and $80,000 with each outcome equally likely.

Apply the Expected-Value Criterion to Choose Between These Investments