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

Therefore the expected value is $32