In a game, you win 67 dollars with probability 20% and 20 dollars with probability 30%. What is the expected value?

**Choice B is the best answer.** E = 67(0.2) + 20(0.3) = 13.4 + 6 = 19.4 dollars

**Choice B is the best answer.** E = 67(0.2) + 20(0.3) = 13.4 + 6 = 19.4 dollars

Set 2: Probability (Advanced)

Explanation

Answer: B

PROBLEM

In a game, you win $67 with probability 20% and $20 with probability 30%. What is the expected value?

38.8

19.4

✓ Correct

24.4

14.399999999999999

Choice B is the best answer. E = 67(0.2) + 20(0.3) = 13.4 + 6 = $19.4

Why others are wrong:

A: 38.8 is incorrect because it does not satisfy the equation.

C: 24.4 is incorrect because it does not satisfy the equation.

D: 14.399999999999999 is incorrect because it does not satisfy the equation.