Answer:
The expected value is $3.95
Step-by-step explanation:
Here, we want to get the expected value
Mathematically, what we have to do here is to multiply each of the probabilities by the pay out value, before we proceed to add up
We have this as;
0(0.5) + 0.2(5) + 0.15(8) + 10(0.1) + 15(0.05)
= 0 + 1 + 1.2 + 1 + 0.75 = 3.95
