Question

Find the expected value of the winnings from the game

Answer 1

To find the expected value we will multiply the probability by payout, then add all products

`\begin{gathered} 0*0.45=0 \\ 2*0.3=0.6 \\ 4*0.1=0.4 \\ 8*0.1=0.8 \\ 10*0.05=0.5 \end{gathered}`

Now we will add all products

`\begin{gathered} E(p)=0+0.6+0.4+0.8+0.5 \\ E(p)=2.30 \end{gathered}`

The answer is 2.30