A box contains ten $1 bills, five $5 bills, seven $10 bills, and four $20 bills. What is the
Expectation if one bill is selected?
A)$7.12
B)$6.12
C)$9.12
D)$8.12

Question

Quizplus · Accepted Answer

The expected value is the sum of the products of the possible outcomes and their probabilities. In this case, the possible outcomes are $1, $5, $10, and $20, and the probabilities are 10/26, 5/26, 7/26, and 4/26, respectively. Therefore, the expected value is (1 * 10/26) + (5 * 5/26) + (10 * 7/26) + (20 * 4/26) = $7.12.

A Box Contains Ten $1 Bills, Five $5 Bills, Seven