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Expected Value of Guessing on a Multiple Choice Test

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In a multi-choice test, each question has four options. Students wil get 10 points for each correct answer; lose four points for each incorrect answer; and receive no points for unanswered questions. A student does not know the correct answer for one question. Is it to her advantage or disadvantage to guess an answer? Show calculations for expected value.

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Solution Summary

This solution provides the calculations for the expected value.

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If the student guess an answer, then he/she has 1/4 chance to answer correctly and get 10 points ...

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