Mathematics, 04.02.2020 00:03 serianmollel
Justin buys a racehorse for $25,000 and enters it in two races. he plans to sell the horse afterwards, hoping to make a profit. if the horse wins both races, its value will jump to $100,000. if the horse wins one of the races, it will be worth $60,000. if it loses both races, it will be worth only $15,000. justin believes that there is a 25% chance the horse will win the first race and a 35% chance it will win the second race. assume the two races are independent of one another. what is the the expected value?
a) $25,000
b) $201,000
c) $176,000
d) $41,562.50
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Justin buys a racehorse for $25,000 and enters it in two races. he plans to sell the horse afterward...
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