In a game, you have a 1/20 probability of winning $76 and a 19/20 probability of losing $9. What is your expected value?
A) $12.35
B) -$8.55
C) $3.80
D) -$4.75

Name: In a game, you have a 1/20 probability of winning $76 and a 19/20 probability of losing $9. What is your expected value? A) $12.35 B) -$8.55 C) $3.80 D) -$4.75
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The expected value is calculated by multiplying each outcome by its probability and summing the results: (1/20 * $76) + (19/20 * -$9) = $3.80 - $8.55 = -$4.75.

In a Game, You Have a 1/20 Probability of Winning