Question

What is the expected value?

Answer 1

2.1

Explanation:

The expected value of a probability is given by the formula:

E(x) = Σxp(x)

Therefore from the table showing the winnings of a game, the expected value of the probability distribution is:

E(x) = Σxp(x) = (0 * 0.5) + (2 * 0.2) + (4 * 0.15) + (6 * 0.1) + (10 * 0.05)

E(x) = 0 + 0.4 + 0.6 + 0.6 + 0.5 = 2.1

Hence we can conclude that the expected value of the winnings of the game is 2.1.