8
Answer: DSet 3: Probability (Advanced)
Explanation
PROBLEM
In a game, you win $52 with probability 20% and $12 with probability 30%. What is the expected value?
In a game, you win $52 with probability 20% and $12 with probability 30%. What is the expected value?
A.
28
B.
19
C.
9
D.✓ Correct
14
Detailed Explanation
Choice D is the best answer. E = 52(0.2) + 12(0.3) = 10.4 + 3.5999999999999996 = $14
Why others are wrong:
A: 28 is incorrect because it does not satisfy the equation.
B: 19 is incorrect because it does not satisfy the equation.
C: 9 is incorrect because it does not satisfy the equation.