<span>Expected value is the sum of the probability of each even times the outcome of the event.
So she wins $10 with probability 2/8, $3 with probability 1/8, $0 with probability 3/8, and loses $3 with probability 2/8.
So,
E = 10(2/8) + 3(1/8) + 0(3/8) - 3(2/8)
=5/4 + 3/8 - 3/4
=7/4
<span>= $1.75
</span>
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The correct answer ic C)12
