Question

Find the expected value of the winnings

from a game that has the following payout
probability distribution:
Payout ($) -6
-4 -2
0 2
Probability 0.34 0.13 0.06 0.13 0.34
Expected Value = [?]
Round to the nearest hundredth.
Enter

Answer 1

-6(.34) - 4(.13) - 2(.06) + 0(.13) + 2(.34) = -2

The expected value of the winnings is -$2

(a loss of $2).