Question

Cellus

Find the expected value of the winnings
from a game that has the following payout
probability distribution:
Payout ($) 2 4
6 8 10
Probability 0.36 0.04 0.12 0.20 0.28
Expected Value = [?]
Round to the nearest hundredth.
Enter

Answer 1

The expected value is 3.1.

Explanation:

The ratio of the number of favorable outcomes to the total number of outcomes in other words the probability is the number that shows the happening of the event.

We will multiply the payout to probability until we get the answer.

= 0×0.45 = 0

= 4×0.3 = 1.2 etc...

= 0+1.2+0.6+0.8+0.5

= $3.1

Hope this helps have a great day :)