Question

Find the expected value of the winningsfrom a game that has the followingpayout probability distribution:Payout ($) 24 6810Probability 0.5 0.2 0.15 0.1 0.05Expected Value = [?]Round to the nearest hundredth.Enter

Answer 1

Let's begin by listing out the given information:

The formula to calculate Expected Value is given by:

`\begin{gathered} E(X)=\Sigma x_{}P(x_{}) \\ E(X)=(2\cdot0.5)+(4\cdot0.2)+(6\cdot0.15)+(8\cdot0.1)+(10\cdot0.05) \\ E(X)=1+0.8+0.9+0.8+0.5 \\ E(X)=4.00 \\ \\ \therefore E(X)=4.00 \end{gathered}`

Therefore, the Expected Value is 4