What is the difference between a normal distribution and the standard normal distribution?
What will be an ideal response?
Question 2
An individual is indifferent between receiving a guaranteed amount of 1,000 and taking a chance of receiving 1,500 with probability 0.75 and losing 800 with probability 0.25. What is the expected value of this gamble?
A) 1,000
B) 740
C) 925
D) 650