Use the following to answer questions:
-(Table: Choice with Uncertainty) Look at the table Choice with Uncertainty. Suppose the probability that the sitcom does not make it to television is 30%, that it makes it to television but is not the most viewed show in its time slot is 50%, and that it makes it to television and is the most viewed show in its time slot is 20%. Given this information, Norman's expected income is:
A) $52,500.
B) $47,500.
C) $40,000.
D) $37,500.

Question

Use the following to answer questions: 
-(Table: Choice with Uncertainty) Look at the table Choice with Uncertainty. Suppose the probability that the sitcom does not make it to television is 30%, that it makes it to television but is not the most viewed show in its time slot is 50%, and that it makes it to television and is the most viewed show in its time slot is 20%. Given this information, Norman's expected income is:
A) $52,500. 
B) $47,500. 
C) $40,000. 
D) $37,500.

Quizplus · Accepted Answer

The expected income is calculated by multiplying each outcome by its probability and summing them up: (0.3 * $0) + (0.5 * $50,000) + (0.2 * $100,000) = $52,500.

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