24.4 The Expected Value of an Action.Using the payoff table ($ million) is shown below, if the probabilities for future mortgage interest rates going up, staying about the same, and going down are .35, .50 and .15, respectively, what is the expected value for building an active retirement community?

A)$2.5 million
B)$3.625 million
C)$2.75 million
D)$875,000
E)None of the above

Question

24.4 The Expected Value of an Action.Using the payoff table ($ million) is shown below, if the probabilities for future mortgage interest rates going up, staying about the same, and going down are .35, .50 and .15, respectively, what is the expected value for building an active retirement community?
24.4 The Expected Value of an Action.Using the payoff table ($ million) is shown below, if the probabilities for future mortgage interest rates going up, staying about the same, and going down are .35, .50 and .15, respectively, what is the expected value for building an active retirement community? A) $2.5 million B) $3.625 million C) $2.75 million D) $875,000 E) None of the above

A)$2.5 million 
B)$3.625 million 
C)$2.75 million 
D)$875,000 
E)None of the above

Quizplus · Accepted Answer

The Answer of 24.4 The Expected Value of an Action.Using the payoff table ($ million) is shown below, if the probabilities for future mortgage interest rates going up, staying about the same, and going down are .35, .50 and .15, respectively, what is the expected value for building an active retirement community?

A)$2.5 million 
B)$3.625 million 
C)$2.75 million 
D)$875,000 
E)None of the above

244 the Expected Value of an Action