Question

Sellus

Find the expected value of the winnings
from a game that has the following
payout probability distribution:
Payout ($)| 0 2 4 8 10
Probability 0.35 0.2 0.1 0.2 0.15
Round in the nearest hundredth

Answer 1

3.9

Explanation:

Given the data:

Payout ($) (x) : 0 2 4 8 10

Probability p(x) : 0.35 0.2 0.1 0.2 0.15

The expected winning ; E(X) = Σ(x * p(x))

Σ(x * p(x)) = (0*0.35)+(2*0.2)+(4*0.1)+(8*0.2)+(10*0.15)

= 0 + 0.4 + 0.4 + 1.6 + 1.5

= 3.9