Question

The following table shows the probability distribution for the prize amounts that will be awarded at a school raffle. Prize $1 $5 $10 $20 $50 Probability 0.60 0.30 0.05 0.04 0.01 Let the random variable P represent a randomly selected prize amount. What is the expected value of P ? $1.00 A $3.90 B $4.00 C $10.00 D $17.20

Answer 1

Answer:

$3.90

Step-by-step explanation:

The expected value is the sum of each outcome multiplied by its probability.

E(P) = (1)(0.60) + (5)(0.30) + (10)(0.05) + (20)(0.04) + (50)(0.01)

E(P) = 3.9