Correct answer is Bfficeffice" />
A is incorrect as 1 does not equal 1/1.0101010.
B is correct, as 1.0101010 is greater than or equal to 1/1. This is due to Jensen's Inequality, which says that for any convex function the expectation of f(x) is greater than or equal to the function evaluated at the expectation of x.
C is incorrect as 1.0101010 is not less than or equal to 1.
D is incorrect as 1 is not equal to 1.0101010.
Reference: Related to the concept of Jensen's Inequality is that of the Siegel Paradox, which is mentioned in ffice:smarttags" />Hull, chapter 21, on or about the last few pages depending on the edition. |