Question

Suppose you are willing to pay ​$1,000 for a​ low-quality used car and ​$6,000 for a​ high-quality used car. If there is a 75 percent chance of getting a​ low-quality car and a 25 percent chance of getting a​ high-quality car, you are willing to pay ​$____ for a used car. ​(Enter your response rounded to the nearest​ dollar.)

Answer 1

Answer:

You are willing to pay $2,250 for a used car.

Explanation:

$1,000 x 75% = $750

$6,000 x 25% = $1,500

$750 + $1,500 = $2,250