In a game, you win 64 dollars with probability 20% and 29 dollars with probability 30%. What is the expected value?

**Choice C is the best answer.** E = 64(0.2) + 29(0.3) = 12.8 + 8.7 = 21.5 dollars

**Choice C is the best answer.** E = 64(0.2) + 29(0.3) = 12.8 + 8.7 = 21.5 dollars

Set 3: Probability (Advanced)

Explanation

Answer: C

PROBLEM

In a game, you win $64 with probability 20% and $29 with probability 30%. What is the expected value?

26.5

16.5

21.5

✓ Correct

Choice C is the best answer. E = 64(0.2) + 29(0.3) = 12.8 + 8.7 = $21.5

Why others are wrong:

A: 26.5 is incorrect because it does not satisfy the equation.

B: 16.5 is incorrect because it does not satisfy the equation.

D: 43 is incorrect because it does not satisfy the equation.