Find the expected value of the random variable. Round to the nearest cent unless stated otherwise.
-In a game, you have a 1/33 probability of winning $62 and a 32/33 probability of losing $2. What is your expected value?
A)-$1.94
B)$1.88
C)$3.82
D)-$0.06

Question

Find the expected value of the random variable. Round to the nearest cent unless stated otherwise.
-In a game, you have a 1/33 probability of winning $62 and a 32/33 probability of losing $2. What is your expected value? 
A)-$1.94
B)$1.88
C)$3.82
D)-$0.06

Quizplus · Accepted Answer

The expected value (EV) is calculated by multiplying each outcome by its probability and summing these products. EV = (1/33 * $62) + (32/33 * -$2) = $62/33 - $64/33 = -$2/33, which is approximately -$0.06.

Find the Expected Value of the Random Variable