Question: Under normal conditions (80% probability), Financing Plan A will produce a $40,000 higher return than Plan B. Under tight money conditions (20% probability), Plan A

Under normal conditions (80% probability), Financing Plan A will produce a $40,000 higher return than Plan B. Under tight money conditions (20% probability), Plan A will produce $30,000 less than Plan B.

What is the expected value of return?

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