Three possibilities have probabilities 0.5,0.4 and 0.1 and values $10,$20,and $30 respectively.The expected value is:
A)$15
B)$16
C)$17
D)$18

Question

​Three possibilities have probabilities 0.5,0.4 and 0.1 and values $10,$20,and $30 respectively.The expected value is:
A)​$15
B)$16
C)$17
D)​$18

Quizplus · Accepted Answer

The expected value is given by the sum of the product of each value and its probability. Thus, the expected value is: 
$10 	imes 0.5 + 20 	imes 0.4 + 30 	imes 0.1 = 5 + 8 + 3 = 16$. Therefore, the best choice is B.

​Three Possibilities Have Probabilities 0

Three Possibilities Have Probabilities 0