Set 1: Probability (Advanced)

**Choice C is the best answer.** E = 64(0.2) + 18(0.3) = 12.8 + 5.3999999999999995 = 18.2 dollars

Explanation

Answer: C

PROBLEM

In a game, you win $64 with probability 20% and $18 with probability 30%. What is the expected value?

36.4

13.2

18.2

✓ Correct

23.2

Detailed Explanation

Choice C is the best answer. E = 64(0.2) + 18(0.3) = 12.8 + 5.3999999999999995 = $18.2

Why others are wrong:

A: 36.4 is incorrect because it does not satisfy the equation.

B: 13.2 is incorrect because it does not satisfy the equation.

D: 23.2 is incorrect because it does not satisfy the equation.