1. Consider a lottery with three possible outcomes:-$125 will be received with probability 0.2-$100 will be received with probab
ility 0.3-$50 will be received with probability 0.5a. What is the expected value of the lottery
1 answer:
Answer:
The expected value of the lottery is $80
Step-by-step explanation:
To get the expected value, we have to multiply each outcome by its probability
Then we proceed to add up all of these to get the expected value of the lottery
we have this as ;;
125(0.2) + 100(0.3) + 50(0.5)
= 25 + 30 + 25 = $80
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