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morpeh [17]
3 years ago
12

A box contains one each of $1, $5, $10, $20, and $100 bills. you reach in and withdraw one bill. what is the expected value?

Mathematics
1 answer:
galina1969 [7]3 years ago
4 0
The expected value is simply the average of the values of all of the bills. 

<span>The expected value is the sum of the values of each bill times the probability that that bill is drawn. </span>

<span>There are 5 bills, 1, 5, 10, 20, 100. </span>

<span>The probability of drawing one of the bills out of a hat is 1 out of 5, or 1/5. </span>

<span>The expected value then is: </span>

<span>EV = (1/5) * $1 + (1/5) * $5 +(1/5) * $10 +(1/5) * $20 +(1/5) * $100 </span>

<span>Rewriting, you can see that in this problem, EV is just the average of the five bill values </span>
<span>EV = (1/5) * ($1 + $5 + $10 + $20 + $100) </span>

<span>EV = $27.20 </span>

<span>Hope this helps, </span>
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