Question

Find the expected value of the winnings
from a game that has the following
payout probability distribution:

Answer 1

Answer:

The expected value is $3.95

Step-by-step explanation:

Here, we want to get the expected value

Mathematically, what we have to do here is to multiply each of the probabilities by the pay out value, before we proceed to add up

We have this as;

0(0.5) + 0.2(5) + 0.15(8) + 10(0.1) + 15(0.05)

= 0 + 1 + 1.2 + 1 + 0.75 = 3.95

Answer 2

Answer:

3.00

Step-by-step explanation:

Given that :

Payout(X) : ___ 0 ___ 4 ___ 6 ____ 8 _____ 10

Probability (p(x) 0.5 _ 0.2 __0.15 __0.1 ___ 0.05

Expected value :E(X) = ΣX* p(x)

E(X) = (0*0.5) + (4*0.2) + (6*0.15) + (8*0.1) + (10*0.05)

E(X) = 3

Expected value = 3.00