In a game, you win 84 dollars with probability 20% and 22 dollars with probability 30%. What is the expected value?

**Choice A is the best answer.** E = 84(0.2) + 22(0.3) = 16.8 + 6.6 = 23.4 dollars

**Choice A is the best answer.** E = 84(0.2) + 22(0.3) = 16.8 + 6.6 = 23.4 dollars

Set 2: Probability (Advanced)

Explanation

Answer: A

PROBLEM

In a game, you win $84 with probability 20% and $22 with probability 30%. What is the expected value?

23.4

✓ Correct

18.4

28.4

46.8

Choice A is the best answer. E = 84(0.2) + 22(0.3) = 16.8 + 6.6 = $23.4

Why others are wrong:

B: 18.4 is incorrect because it does not satisfy the equation.

C: 28.4 is incorrect because it does not satisfy the equation.

D: 46.8 is incorrect because it does not satisfy the equation.