Joe is contemplating a job where, with probability 0.6, he will make $100,000 and with probability 0.4 he will make $30,000. What is Joe's expected income from taking the job?
A) $12,000
B) $60,000
C) $72,000
D) $90,000

Question

Quizplus · Accepted Answer

The expected income is calculated by multiplying each outcome by its probability and summing the results: (0.6 * $100,000) + (0.4 * $30,000) = $60,000 + $12,000 = $72,000.

Joe Is Contemplating a Job Where, with Probability 0