A lawyer in a court case estimates that with probability 0.25 she will win $100,000, with probability 0.4 she will win $10,000, and with probability 0.35 she will win nothing. Her client is offered a settlement of $35,000 to drop the suit. Based on the expected value, should she advise her client to accept the settlement? Yes or No

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.4: Expected Value
Problem 1E: If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the...
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A lawyer in a court case estimates that with probability 0.25 she will win $100,000, with probability 0.4 she will win $10,000, and with probability 0.35 she will win nothing. Her client is offered a settlement of $35,000 to drop the suit. Based on the expected value, should she advise her client to accept the settlement?

Yes or No    
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