6
Answer: CSet 3: Probability (Advanced)
Explanation
PROBLEM
In a game, you win $70 with probability 20% and $12 with probability 30%. What is the expected value?
In a game, you win $70 with probability 20% and $12 with probability 30%. What is the expected value?
A.
22.6
B.
35.2
C.✓ Correct
17.6
D.
12.600000000000001
Detailed Explanation
Choice C is the best answer. E = 70(0.2) + 12(0.3) = 14 + 3.5999999999999996 = $17.6
Why others are wrong:
A: 22.6 is incorrect because it does not satisfy the equation.
B: 35.2 is incorrect because it does not satisfy the equation.
D: 12.600000000000001 is incorrect because it does not satisfy the equation.