Problem 57 of 7
Compare two strategies by expected value from Project Alpha yields $200 with 60% chance, $50 with 30% chance, and -$100 with 10% chance. Project Beta yields $150 with 70% chance and $0 with 30% chance.
Using a hint is okay. It just tells the trainer to give you a little more review.
Hidden until you reveal it.
calculate and compare long-run averages.
Hidden until you reveal it.
Compare long-run average outcomes using the same net/gross convention.
Enter your answer
Your answer is equivalent to the expected form.
Walkthrough
Full solution stays hidden until you ask for it.
1. Compute expected value for each strategy.
2. Check both use net or both use gross outcomes.
3. Compare values and state which is larger.
Use the worked steps, then substitute the final answer back into the original relationship to confirm it satisfies the prompt.
Comparing only best-case payouts.