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) ​$15B) $16C) $17D) ​$18

Asemahle Majeke · Accepted Answer

Final Answer : B, Explanation :  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 0.5,0.4 and 0.1 and values $10,$20,and $30 respectively.The expected value is:

A) $15
B) $16
C) $17
D) $18

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Learning Objectives

Learning Objectives

Related questions

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

Definitions

Learning Objectives

Learning Objectives

Related questions

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