In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. What is the expected value of this game?
A) +$2
B) $0.20
C) -$2
D) -$0.20

Name: In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. What is the expected value of this game? A) +$2 B) $0.20 C) -$2 D) -$0.20
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The expected value is calculated as (0.1 * $7) + (0.9 * -$1) = $0.70 - $0.90 = -$0.20.

In a Gambling Game, on Every Play, There Is a 0.1