You have three options for the evening.
(a) You could watch some sitcoms on TV that you are certain to enjoy and that will provide you with a relative pleasure rating of 4.
(b) You could go to a movie that is supposed to be good. You would enjoy the movie with probability 0.5; if you enjoy it, it will provide you with a relative pleasure rating of 11, but if you don’t enjoy it, it will provide a negative rating of −2.
(c) You could go on a date. With probability 0.3 you will experience a pleasure rating of 22, and with probability 0.7 the date will provide a negative rating of −2.
What are the expected values of pleasure for these individual activities?
TV expected value =
Movie expected value =
Date expected value =