Question: Mme Giselle s boutique in Cleveland Ohio is planning to sell
Mme. Giselle’s boutique in Cleveland, Ohio, is planning to sell a Parisian frock. If the public view it as being the latest style, the frocks will be worth $ 10,000. However, if they are viewed as passé, they will be worth only $ 2,000. If the probability that they are stylish is 20%, what is the expected value of the frocks?
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