A company gives each worker a cash bonus every Friday, randomly giving a worker an amount with these probabilities: $10 - 0.75,

Question

2 years ago

8

$50 - 0.25. Over many weeks, what is a worker's expected weekly bonus?

1 answer:

Shkiper50 [21] · Answer 1 · 2023-08-04T08:55:18+03:00

The worker's expected weekly bonus is $30.0

<h3>How to determine the worker's expected weekly bonus?</h3>

The amounts and the probabilities are given as:

x $10 $50

P(x) 0.75 0.25

The worker's expected weekly bonus is calculated as:

$E(x) = \sum x * P(x)$

So, we have:

E(x) = $10 * 0.75 + $50 * 0.25

Evaluate the product

E(x) = $17.5 + $12.5

Evaluate the sum

E(x) = $30.0

Hence, the worker's expected weekly bonus is $30.0