Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. The expected value of this gamble is ________.
A)-$1
B)$0
C)$1
D)$2

Question

Suppose Chris is offered the following gamble:  with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. The expected value of this gamble is ________. 
A)-$1
B)$0
C)$1
D)$2

Quizplus · Accepted Answer

(0.1)($90)+ (0.4)($50)+ (0.5)(-$60)= -$1.

Suppose Chris Is Offered the Following Gamble: with Probability 0