Question

Find the expected value of the winnings
from a game that has the following
payout probability distribution:
Payout ($)| 0 4 6 8 10
Probability 0.45 0.3 0.1 0.1 0.05
Expected Value = [?]
Round to the nearest hundredth.

Answer 1

Answer:

2.65

Step-by-step explanation:

Multiply each payout by its probability, then add those products.

See the attached image.

The first column has the payouts.  The second column has the probabilities. The third column has the results of multiplying a payout by its probability.

The sum of the entries in the third column is 2.65

Answer 2

The expected value is $3.1 if the payout probability distribution is payout ($)| 0 4 6 8 10 probability 0.45 0.3 0.1 0.1 0.05

What is probability?

It is defined as the ratio of the number of favorable outcomes to the total number of outcomes in other words the probability is the number that shows the happening of the event.

From the table we can find the expected value:

Multiply payout to probability such that:

= 0×0.45 = 0

= 4×0.3 = 1.2

And so on

Now sum all values(refer to the attached table)

= 0+1.2+0.6+0.8+0.5

= $3.1

Thus, the expected value is $3.1 if the payout probability distribution is payout ($)| 0 4 6 8 10 probability 0.45 0.3 0.1 0.1 0.05

Learn more about the probability here:

brainly.com/question/11234923

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