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Margaret [11]
3 years ago
5

Find the expected value of the winnings

Mathematics
1 answer:
lord [1]3 years ago
8 0

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

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[more detailed at the bottom of the explanation]

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—————

Step 1)

Equation 1:

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Equation 2 can also be written as:

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—————

Step 2)

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—————

Step 3)

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—————

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(-9/7,-26/7)

————— ————— —————

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