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For Questions Use the Following Narrative

Question 40

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For Questions use the following narrative
Narrative: Taxes
Suppose you have a taxing policy where 60% of the population pays $10,000 per year in taxes per person, and the other 40% pays $100 per year in taxes per person.
-{Taxes narrative} Explain how the expected value can be misleading if it is interpreted by someone as the amount of taxes they will have to pay in a given year.

Correct Answer:

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the expected value is an overa...

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