In a game, you win 86 dollars with probability 20% and 28 dollars with probability 30%. What is the expected value?

**Choice A is the best answer.** E = 86(0.2) + 28(0.3) = 17.2 + 8.4 = 25.6 dollars

**Choice A is the best answer.** E = 86(0.2) + 28(0.3) = 17.2 + 8.4 = 25.6 dollars

Set 2: Probability (Advanced)

Explanation

Answer: A

PROBLEM

In a game, you win $86 with probability 20% and $28 with probability 30%. What is the expected value?

25.6

✓ Correct

20.6

51.2

30.6

Choice A is the best answer. E = 86(0.2) + 28(0.3) = 17.2 + 8.4 = $25.6

Why others are wrong:

B: 20.6 is incorrect because it does not satisfy the equation.

C: 51.2 is incorrect because it does not satisfy the equation.

D: 30.6 is incorrect because it does not satisfy the equation.