Find the expected value of the winnings
1 answer:
The expected value of the winnings from the game is $4
<h3>How to determine the expected value?</h3>The payout probability distribution is given as:
Payout ($) 2 4 6 8 10
Probability 0.5 0.2 0.15 0.1 0.05
The expected value is then calculated as:
This gives
E(x) = 2 * 0.5 + 4 * 0.2 + 6 * 0.15 + 8 * 0.1 + 10 * 0.05
Evaluate the expression
E(x) = 4
Hence, the expected value of the winnings from the game is $4
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