Question

Suppose a basketball player has made 184 out of 329 free throws. If the player make the next two free throws, I will pay you $24. Otherwise you pay me $12. Find the expected value of the proposition

Answer 1

Given that the player made 184 out of 329 throws, the probability of making the next throw will be:
P(x)=[Number of shots made]/[Total number of throws]
=184/329
=0.559
Thus the expected value of proposition will be:
0.599*24+0.559*12
=20.134