Question

Find the expected value of the winnings

from a game that has the following
payout probability distribution:

Answer 1

3.00

Explanation:

Given that :

Payout(X) : ___ 0 ___ 4 ___ 6 ____ 8 _____ 10

Probability (p(x) 0.5 _ 0.2 __0.15 __0.1 ___ 0.05

Expected value :E(X) = ΣX* p(x)

E(X) = (0*0.5) + (4*0.2) + (6*0.15) + (8*0.1) + (10*0.05)

E(X) = 3

Expected value = 3.00

Answer 2

The expected value is $3.95

Explanation:

Here, we want to get the expected value

Mathematically, what we have to do here is to multiply each of the probabilities by the pay out value, before we proceed to add up

We have this as;

0(0.5) + 0.2(5) + 0.15(8) + 10(0.1) + 15(0.05)

= 0 + 1 + 1.2 + 1 + 0.75 = 3.95