In a game, you win 52 dollars with probability 20% and 27 dollars with probability 30%. What is the expected value?

**Choice D is the best answer.** E = 52(0.2) + 27(0.3) = 10.4 + 8.1 = 18.5 dollars

**Choice D is the best answer.** E = 52(0.2) + 27(0.3) = 10.4 + 8.1 = 18.5 dollars

Set 1: Probability (Advanced)

Explanation

Answer: D

PROBLEM

In a game, you win $52 with probability 20% and $27 with probability 30%. What is the expected value?

23.5

13.5

18.5

✓ Correct

Choice D is the best answer. E = 52(0.2) + 27(0.3) = 10.4 + 8.1 = $18.5

Why others are wrong:

A: 23.5 is incorrect because it does not satisfy the equation.

B: 13.5 is incorrect because it does not satisfy the equation.

C: 37 is incorrect because it does not satisfy the equation.