Question

a person pays $25 to randomly select one of 5 envelopes containing a different check amount. determine the expected value if the check amounts are $0, $20, $30, $35, and $75

Answer 1

Expected value = $32

Explanation:

Given:

Check amount = $0, $20, $30, $35, $75

Find:

Expected value

Computation:

Expected value = [$0 + $20 + $30 + $35 + $75] / 5

Expected value = [$160] / 5

Expected value = $32