2
Answer: DSet 1: Probability (Advanced)
Explanation
PROBLEM
In a game, you win $58 with probability 20% and $26 with probability 30%. What is the expected value?
In a game, you win $58 with probability 20% and $26 with probability 30%. What is the expected value?
A.
38.800000000000004
B.
24.400000000000002
C.
14.400000000000002
D.✓ Correct
19.400000000000002
Detailed Explanation
Choice D is the best answer. E = 58(0.2) + 26(0.3) = 11.600000000000001 + 7.8 = $19.400000000000002
Why others are wrong:
A: 38.800000000000004 is incorrect because it does not satisfy the equation.
B: 24.400000000000002 is incorrect because it does not satisfy the equation.
C: 14.400000000000002 is incorrect because it does not satisfy the equation.