Question

A person pays $25 to a randomly selected one of five envelope containing a different check amount determine the expected value have to check amounts are zero, 20, 30, 35, and 75

Answer 1

The probability of picking one of the envelope is

$p(x)=\frac{1}{5}$

Therefore

The expected value will be calculated using

$\text{Expected Value =}\sum ^5_{x\mathop=1}\text{xp(x)}$

where

x = $0, $20, $30,$35, $75

hence

we have

$\begin{gathered} 0(\frac{1}{5})+20(\frac{1}{5})+30(\frac{1}{5})+35(\frac{1}{5})+75(\frac{1}{5})_{} \\ =0+4+6+7+15 \\ =32 \end{gathered}$

Therefore the expected value is $32