In a game, you win 95 dollars with probability 20% and 28 dollars with probability 30%. What is the expected value?

**Choice B is the best answer.** E = 95(0.2) + 28(0.3) = 19 + 8.4 = 27.4 dollars

**Choice B is the best answer.** E = 95(0.2) + 28(0.3) = 19 + 8.4 = 27.4 dollars

Set 2: Probability (Advanced)

Explanation

Answer: B

PROBLEM

In a game, you win $95 with probability 20% and $28 with probability 30%. What is the expected value?

54.8

27.4

✓ Correct

22.4

32.4

Choice B is the best answer. E = 95(0.2) + 28(0.3) = 19 + 8.4 = $27.4

Why others are wrong:

A: 54.8 is incorrect because it does not satisfy the equation.

C: 22.4 is incorrect because it does not satisfy the equation.

D: 32.4 is incorrect because it does not satisfy the equation.