Consider the following probability distribution. The expected value is _____.
A) -1.0
B) -0.1
C) 0.1
D) 1.0

Name: Consider the following probability distribution. The expected value is _____. A) -1.0 B) -0.1 C) 0.1 D) 1.0
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Question

Consider the following probability distribution.  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 possible outcome by its respective probability and add them together. 
$(-1)(0.2)+(0)(0.5)+(1)(0.2)+(2)(0.1)=0.1$
Therefore, the expected value is 0.1, which corresponds to choice B.

Consider the Following Probability Distribution