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# Help.

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Scholarship A is worth $3000 and costs$10 to apply. Scholarship B is worth $5000 and costs$25 to apply. You have a 4% chance of receiving Scholarship A and a 2% chance of receiving the Scholarship B.

I can't figure out (b) can someone help I thought it was 25 but it's not.

(a) What is your expected value for Scholarship A?
110

(b) What is your expected value for Scholarship B?
\$  _____________

(c) You can only apply for one scholarship. Which one should you choose?

🗸 Scholarship A

____ Scholarship B

Nov 9, 2018

$$E[V_B] = 5000 \cdot 0.02 - 25 = 100-25 = 75$$