Question

A grab bag contains 12 packages worth $.70 each, 15 packages $.40 cents each, and 25 packages worth $.30 each. what is the expected value if you have to pay $.50 to pick one package at random?
group of answer choices

$0.47

-$0.08

$0.00

$0.01

Answer 1

The expected value of the discrete distribution, if you have to pay $.50 to pick one package at random, is of -$0.08.

What is the mean of a discrete distribution?

The expected value of a discrete distribution is given by the sum of each outcome multiplied by it's respective probability.

For this problem, considering the cost of $0.5, the distribution is given as follows:

• P(X = 0.2) = 12/(12 + 15 + 23) = 12/50 = 0.24.

• P(X = -0.1) = 15/(12 + 15 + 23) = 15/50 = 0.3.

• P(X = -0.2) = 23/(12 + 15 + 23) = 23/50 = 0.46.

Hence the expected value is given by:

E(X) = 0.2 x 0.24 - 0.3 x 0.1 - 0.2 x 0.46 = -$0.08.

More can be learned about the expected value of a discrete distribution at brainly.com/question/13008984

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