What is expected value for scholarship a

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Reference no: EM133207551

Problem:

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?

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

Reference no: EM133207551

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