Mathematics, 26.04.2021 03:20 970032036
6. In a game of chance, a contestant must choose a number from one of three categories. Correct number choices in Category
A are
worth $1500, but there is a penalty of S1000 for each incorrect choice. Correct number choices in Category B are worth $1000,
with a $500 penalty for each incorrect choice Correct number choices in Category C are worth $500, with no penalty for an
incorrect choice. The probability of choosing correctly is 0.05 for Category A, 0.15 for Category B, and 0.25 for Category C. Which
category has the highest expected value?
Answers: 3
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