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Consider the following scenario when answering the following questions:
Suppose that in an experimental setting, 100 students are asked to choose between Gamble A and Gamble B, where:
Gamble A: The student will receive $50 with a 70 percent probability and $100 with a 30 percent probability.
Gamble B: The student will receive $50 with a 50 percent probability, $200 with a 25 percent probability, and $0 (nothing) with a 25 percent probability.
What is the expected value of Gamble A?
a.$50
b.$0
c.$65
d.$45
e.$100
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