If there is a 50% probability that Joseph will earn $10 per hour at his job today and a 50% probability that he will earn $20 per hour today,his expected pay per hour is:
A)$10.00.
B)$12.50.
C)$15.00.
D)$20.00.

Question

Quizplus · Accepted Answer

The expected pay per hour is calculated by multiplying each possible outcome by its probability and then summing these products. So, for Joseph, it's (0.5 * $10) + (0.5 * $20) = $5 + $10 = $15.00.

If There Is a 50% Probability That Joseph Will Earn