Question

Find the excerpted value ​

Answer 1

The expected value is $4.35

Explanation:

Here, we want to find the expected value

To

do that, we simply will multiply each of the payouts by the individual probabilities, then add the results

Mathematically, we have this as;

0.35(1) + 0.2(2) + 0.1(5) + 8(0.2) + 10(0.15)

= 0.35 + 0.4 + 0.15 + 1.6 + 1.5 = $4.35