Problem
Asa buys a painting. There is a 20% probability that the artist will become famous and the painting will be worth $1,000. There is a 10% probability that the painting will be destroyed by fire or some other dis- aster. If the painting is not destroyed and the artist does not become famous, it will be worth $500. What is the expected value of the painting?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.