Question

The probability that mary will win a game is 0.05, so the probability that she will not win is 0.95. if mary wins, she will be given $80; if she loses, she must pay $4. if x = amount of money mary wins (or loses), what is the expected value of x? (round your answer to the nearest cent.)

Answer 1

`x=\$0.20`

Explanation:

we know that

The expected value is the sum of: [(each of the possible outcomes) × (the probability of the outcome occurring)]

In this problem we have

`x=0.05(\$80)-095(\$4)=\$0.20`