You are given the following gamble: behind one door is $500; behind another is $100; behind another is $0. What is the expected value of the gamble?
A)$600
B)$200
C)$300
D)We need more information in order to answer

Question

Quizplus · Accepted Answer

The expected value of the gamble can be calculated by taking the probability of each outcome and multiplying it by its respective payout, and then adding up all the values. In this case, each event has a probability of 1/3. Therefore:
Expected value = (1/3)($500) + (1/3)($100) + (1/3)($0)
Expected value = $200.

You Are Given the Following Gamble: Behind One Door Is