Question

The expected value of a basket with different outcomes is the average of the values of...

The expected value of a basket with different outcomes is

the average of the values of different outcomes

the average of the values of different outcomes multiplied by the average of the probabilities of the outcomes

the sum of the different outcomes

the sum of the value of each outcome, multiplied by its probability

0 0
Add a comment Improve this question Transcribed image text
Answer #1

expected value = sum of the value of each outcome, multiplied by its probability.

Therefore correct answer is option d. ie. the sum of the value of each outcome, multiplied by its probability

Add a comment
Know the answer?
Add Answer to:
The expected value of a basket with different outcomes is the average of the values of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 31 The expected value of a basket with different outcomes is A) the average of...

    QUESTION 31 The expected value of a basket with different outcomes is A) the average of the values of different outcomes B)the average of the values of different outcomes multiplied by the average of the probabilities of the outcomes C)the sum of the different outcomes D)the sum of the value of each outcome, multiplied by its probability

  • please answer all 3 Question Completion Status: If the firm's marginal cost is $10 and in...

    please answer all 3 Question Completion Status: If the firm's marginal cost is $10 and in the short run capital is fixed, with wages for workers at $40 per hour what must the worker's marginal product per hour bel 510 540 400 If the Marginal Product of capital is 6 and the Marginal Product of laboris 3; the prices of capital and labor are 510 and 12 respectively. What should the manager do Increase output Substitute in more labor for...

  • The following are the expected outcomes for a corporation and the probabilities associated with each outcome....

    The following are the expected outcomes for a corporation and the probabilities associated with each outcome. If demand is               Outcome                                Probability Poor                            0%                                           .10 Average                      10%                                         .40 Good                           15%                                         .30 Excellent                     20%                                         .20 First, Calculate the expected rate of return, r^, r with a hat.   Show all work!!!! 10 points Next, Calculate the Standard Deviation, sigma    Show all work!!!!! 15 points Finally, Calculate the Coefficient of Variation   Show all work!!!!!  2 points

  • An experiment has 6 different outcomes. The probabilities of the first five outcomes are 3/20, 7/20,...

    An experiment has 6 different outcomes. The probabilities of the first five outcomes are 3/20, 7/20, 1/10, 1/25 and 4/25. What is the probability of the last outcome?

  • From the decision tree branch shown, determine the expected values of the two outcomes if decision D3 is already select...

    From the decision tree branch shown, determine the expected values of the two outcomes if decision D3 is already selected and the maximum outcome value is sought. (This decision branch is part of a larger tree.) Probability 0.4 0.3 0.4 When the probability is 0.4, the value is $60. When the probability is 0.3, the value is $-27. When the probability is 0.3, the value is $20. When the probability is 0.6, the value is $-11. When the probability is...

  • Remember, the expected value of a probability distribution is a statistical measure of the average (mean)...

    Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence Consider the following case: James owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of James's...

  • Remember, the expected value of a probability distribution is a statistical measure of the average (mean)...

    Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence. Consider the following case: Joshua owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant Pharmaceuticals (PP). Three-quarters of Joshua's...

  • 1. Statistical measures of standalone risk Aa Aa Remember, the expected value of a probability distribution...

    1. Statistical measures of standalone risk Aa Aa Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence. Consider the following case: Tyler owns a two-stock portfolio that invests in Celestial Crane Cosmetics...

  • Aa Aa 1. Statistical measures of standalone risk Remember, the expected value of a probability distribution...

    Aa Aa 1. Statistical measures of standalone risk Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during all possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence Consider the following case: Ethan owns a two-stock portfolio that invests in Blue Llama Mining...

  • 1. Statistical measures of standalone A Aa Remember, the expected value of a probabilit expected to...

    1. Statistical measures of standalone A Aa Remember, the expected value of a probabilit expected to occur during all possible circumstances (or states of its probability of occurrence OE measure of the average (mean) value expected return under a range of possible ed to result during each state of nature by EU Consider the following case: Tyler owns a two-stock portfolio that in (HWE). Three-quarters of Tyler's portfolio value Mining Company (BLM) and Hungry Whale Electronics BLM's shares, and the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT