Sorry, I accidently labeled it trig because this question is part of my trig test.
Here's my best shot, K
P(win both races) = (.25)(.35) = .0875
P(win one of the two races) = P(win 1st, lose second) + P(lose first, win second) =
(.25)(.65) = .1625 + (.75)(.35) = .2625
So (.1625 + .2625) = .425
P(lose both) = (.75)(.65) = .4875
Expected value =
100000(.0875) + 60000(.425) + 15000(.4875) - 25000 =
$16,562.50 ⇒ D