Answer:
$2.96
Explanation:
Here, we want to get the expected value
To get the expected value, we have to multiply each payout by its corresponding probability and add up for all
So what this mean is that the expected value is the summation of the products of each pay out and their probability
We have the expected value calculated as;
0(0.12) + 1(0.2) + 2(0.38) + 5(0.2) + 10(0.1)
= 0 + 0.2 + 0.76 + 1 + 1 = $2.96