What is the expected value of the gamble

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Reference no: EM132012267

Suppose you won the lottery and had two options: (1) receiving $1.4 million or (2) taking a gamble in which, at the flip of a coin, you receive $2.8 million if a head comes up but receive zero if a tail comes up.

What is the expected value of the gamble? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $550,000 should be entered as 0.55.

Reference no: EM132012267

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