asked 235k views
0 votes
It will rain with probability 0.8. if it does, you earn $200 and if not, you earn $400. the expected value is:

1 Answer

5 votes
It will rain with probability 0.8. if it does, you earn $200 and if not, you earn $400. the expected value is: $200.
This is true because the probability of raining is 0.8%, which is 0.2% away from becoming 1.0%, which is 100%. Since you earn $200 if it rains and the probability of rain is the majority, the expected value is $200.
answered
User Nodame
by
8.2k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.