4
Answer: CSet 2: Probability (Advanced)
Explanation
PROBLEM
In a game, you win $87 with probability 20% and $18 with probability 30%. What is the expected value?
In a game, you win $87 with probability 20% and $18 with probability 30%. What is the expected value?
A.
17.8
B.
45.6
C.✓ Correct
22.8
D.
27.8
Detailed Explanation
Choice C is the best answer. E = 87(0.2) + 18(0.3) = 17.400000000000002 + 5.3999999999999995 = $22.8
Why others are wrong:
A: 17.8 is incorrect because it does not satisfy the equation.
B: 45.6 is incorrect because it does not satisfy the equation.
D: 27.8 is incorrect because it does not satisfy the equation.