Exhibit 5-4.Consider the following probability distribution. Refer to Exhibit 5-4.The expected value is _____.
A)-1.0
B)-0.1
C)0.1
D)1.0

Question

Exhibit 5-4.Consider the following probability distribution.  Refer to Exhibit 5-4.The expected value is _____.
A)-1.0 
B)-0.1 
C)0.1 
D)1.0

Quizplus · Accepted Answer

To find the expected value, we multiply each outcome by its corresponding probability and then sum them up. For this distribution, it would be: (-2)(0.2) + (-1)(0.3) + (0)(0.1) + (1)(0.3) + (2)(0.1) = -0.1. Therefore, the answer is B, -0.1.