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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