7
Answer: BSet 3: Probability (Advanced)
Explanation
PROBLEM
In a game, you win $71 with probability 20% and $19 with probability 30%. What is the expected value?
In a game, you win $71 with probability 20% and $19 with probability 30%. What is the expected value?
A.
14.900000000000002
B.✓ Correct
19.900000000000002
C.
24.900000000000002
D.
39.800000000000004
Detailed Explanation
Choice B is the best answer. E = 71(0.2) + 19(0.3) = 14.200000000000001 + 5.7 = $19.900000000000002
Why others are wrong:
A: 14.900000000000002 is incorrect because it does not satisfy the equation.
C: 24.900000000000002 is incorrect because it does not satisfy the equation.
D: 39.800000000000004 is incorrect because it does not satisfy the equation.