Question

Work at a convenience store 60% of your time, and earn $11.00 an hour. Referee games at your city park 25% of your time, and earn $19.00 an hour. Do your elderly neighbor’s housework 15% of your time, and earn $16.00 an hour. What will your average hourly wage be? Enter your answer up to two decimal places.

Answer 1

13.75

Explanation:

The expected value of the hourly wage is the sum of the probabilities (percentage of time spent on each job) multiplied by the payoff (money earned) from each possible occurrence (job):

(0.6 × 11) + (0.25 × 19) + (0.15 × 16) = $13.75.