Answer:
$4,754
Explanation:
The computation of the Victor's expected cost is shown below:
= Cost × Probability + Cost × Probability + Cost × Probability + Cost × Probability
= $800 × 0.16 + $2,400 × 0.39 + $5,400 × 0.25 + $11,700 × 0.20
= $128 + $936 + $1,350 + $2,340
= $4,754
We simply multiply the cost with its probability to find out the expected cost