Question

1. when calculating expected values, what does the impact of outcome refer to?

a. the quantitative effect or consequence of the outcome
b. the probability of the outcome happening
c. the speed at which the outcome occurs
d. the emotional effect of the outcome

Explanation:

When calculating expected values, the formula is \(E(X)=\sum_{i}x_ip_i\), where \(x_i\) represents the value (quantitative effect or consequence) of the \(i -\)th outcome and \(p_i\) is the probability of that outcome. The "Impact of Outcome" refers to the quantitative aspect of the outcome. Option b is the probability (denoted as \(p_i\) in the formula), option c is not relevant to the expected - value calculation, and option d (emotional effect) is not a part of the standard expected - value formula which deals with quantitative values.

Answer:

A. The quantitative effect or consequence of the outcome