Question

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

Answer 1

The Expected value is

$\begin{gathered} =\text{ 0}\times0.45\text{ }+4\times0.3+6\times0.1+\text{ 8}\times0.1+10\times0.05 \\ =0+1.2+0.6+0.8+0.5 \\ =3.1 \end{gathered}$