Question

A taxi driver estimates that his earnings are $240 on a fine day and $320 on a wet day. What are his expected earnings on a day with probability of rain of 0.45?

Answer 1

Probability of raining=0.45 
Probability of not raining=1-0.45=0.55
The expected earning will be given by:
E(x)=240(0.55)+320(0.45)
E(x)=132+144
E(x)=276

Answer: $276