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Question
Scenario 5.2:Randy and Samantha are shopping for new cars (one each). Randy expects to pay $15,000 with 1/5 probability and $20,000 with 4/5 probability. Samantha expects to pay $12,000 with 1/4 probability and $20,000 with 3/4 probability.
Refer to Scenario 5.2. Which of the following is true?
A) Randy has a higher expected expense than Samantha for the car.
B) Randy has a lower expected expense than Samantha for the car.
C) Randy and Samantha have the same expected expense for the car, and it is somewhat less than $20,000.
D) Randy and Samantha have the same expected expense for the car: $20,000.
E) It is not possible to calculate the expected expense for the car until the true probabilities are known.
Answer
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Related questions
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Use the following statements to answer this question:
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