Question 614190
Sun wants to sell an antique chair. She is thinking about selling the chair in an online auction. Sun estimates that the probability that she will get $100 for the chair is 25%, the probability that she will get $200 is 40%, and the probability that she will get $600 is 35%. 
However, an antique dealer in Sun’s neighborhood has offered her $250 for the chair. 
If Sun wants to maximize her expected payment, should she sell the chair online, or sell it to the dealer? Explain.
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Expected payment = 0.25*100 + 0.40*200 + 0.35*600 = $315.00
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She should sell online.
Cheers,
Stan H.