5.6k views
3 votes
In a game, you have a 1/21 probability of winning $107 and a 20/21 probability of losing $5. What is your expected winning?

A) $0.33
B) $9.86
C) $5.10
D) -$4.76

User Torbonde
by
8.4k points

1 Answer

2 votes

Answer:

The correct option is A.

Explanation:

The formula to compute the expected value is:


E(X)=\sum x\cdot P(X)

The information provided can be summarized as follows:

X P (X)

Win $107 1/21

Lose -$5 20/21

Compute the value of expected winning as follows:


E(X)=\sum x\cdot P(X)


=(107*(1)/(21))+(-5*(20)/(21))\\\\=(107)/(21)-(100)/(21)\\\\=(107-100)/(21)\\\\=0.33333333\\\\\approx \$0.33

Thus, the value of expected winning is $0.33.

The correct option is A.

User Handhand
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories