Question

Im still having a hard time with these types of problems

Answer 1

An expected value is the theoretical mean value of a numerical experiment over many repetitions of the experiment and is calculated by multiplying each possible outcome by the respective probability and then summing all of those values, that is,

`E=\Sigma_ix_i* P(x_i)`

By substituting the given values into the expected value formula, we get

`E=-1.25*0.6+(-0.25)*0.2+0*0.1+0.50*0.1`

which gives

`E=-0.75-0.05+0+0.05`

Therefore, the expected value is:

`E=-0.75`