Question

A person randomly selects one of six envelopes. Each envelope contains a check that the person gets to keep. Determine a persons expectation if the six envelopes contain checks for $64 $226 $280 $400 $514 and $1095

Answer 1

The number of envelops, n=6.

The expectation value can be obtained as,

$\begin{gathered} E=\frac{64+226+280+400+514+1095}{6} \\ =\frac{2579}{6} \\ \approx429.83 \end{gathered}$

Therefore, a person's expectation is to get approximately $429.83 from the envelope.