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# Scholarship question . help

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Scholarship A is worth $2000 and costs$10 to apply. Scholarship B is worth $4000 and costs$25 to apply. You have a 5% chance of receiving Scholarship A and a 1% chance of receiving the Scholarship B.

(a) What is your expected value for Scholarship A?
$______________ (b) What is your expected value for Scholarship B?$  ________

Sep 30, 2018

#1
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$$P[\text{getting scholarship A}] = 0.05 \\ P[\text{getting scholarship B}] = 0.01\\ E[\text{Value of scholarship A }]= 0.05(2000-10) + 0.95(-10) = 90$$

similarly

$$E[\text{Value of scholarship B}] = 0.01(4000-25) + 0.99(-25) = \15$$

.
Oct 1, 2018
#2
+1

Thanks

Guest Oct 1, 2018