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You
Answered:
 | Add
the values of the two outcomes, and subtract the weighted
probability of occurrence |
Incorrect
Correct answer is:
(A)
The expected
value at the chance node is the sum of the values of the two outcomes,
each weighted by its probability of occurrence. In this case:
Expected value = 0.95
x 10 + 0.05 x 0 = 9.5
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