Question

In a game, you have a 1/21 probability of winning $107 and a 20/21 probability of losing $5. What is your expected winning?

Answer 1

Answer:

The correct option is A.

Step-by-step explanation:

The formula to compute the expected value is:

$E(X)=\sum x\cdot P(X)$

The information provided can be summarized as follows:

              X         P (X)

Win     $107       1/21

Lose     -$5       20/21

Compute the value of expected winning as follows:

$E(X)=\sum x\cdot P(X)$

          $=(107\times\frac{1}{21})+(-5\times\frac{20}{21})\\\\=\frac{107}{21}-\frac{100}{21}\\\\=\frac{107-100}{21}\\\\=0.33333333\\\\\approx \ 0.33$

Thus, the value of expected winning is $0.33.

The correct option is A.