Question

In a carnival game you can either throw a Target A which yields a $7 prize 12% of the time Target B which yields a $3 prize 48% of the time. find the expected value of Target B

Answer 1

The expected value of Target B is $ 1.44.

Explanation:

Since,

Expected value = An outcome × its probability

Here, We have to find out the expected value of target B,

Given,

The probability of getting the price from target B = 48 % = 0.48,

Also, the value of getting the price from the target B = $ 3,

Hence, the expected value of Target B = 3 × 0.48 = $ 1.44

Answer 2

Answer: The expected value of Target B is 1.44.

Explanation:

Since we have given that

For Target B:

Amount of prize = $3

Probability that Target yields a prize = 48%

so, Expected value of Target B is given by

`48\%* 3\\\\=(48)/(100)* 3\\\\=1.44`

Hence, the expected value of Target B is 1.44.