Question

Find the expected value of the winningsfrom a game that has the followingpayout probability distribution:Payout ($)| 012510Probability 0.12 0.2 0.38 0.2 0.1Expected Value = [?]Round to the nearest hundredth.

Answer 1

expected value is 2.96

it comes from the formula

`E(x)\text{ = }\Sigma(x)(P(x))`

E(x) is the expected value

x is the payout

p(x) is the probability