Expected returns: john is watching an old game show rerun on television called let’s make a deal in which the contestant chooses a prize behind one of two curtains. behind one of the curtains is a gag prize worth $150, and behind the other is a round-the world trip worth $7,200. the game show has placed a subliminal message on the curtain containing the gag prize, which makes the probability of choosing the gag prize equal to 75 percent. what is the expected value of the selection, and what is the standard deviation of that selection?

Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. while the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. however, rent in the next best building is $350/month more than rent in the noisy building. the candy maker can adopt a new technology that eliminates the noise for $275/month. given this situation, can the doctor find a private solution with the candy maker that will make both better off?