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Find the expected value of the winnings
from a game that has the following
payout probability distribution:
Payout ($) 2
4 6 8 10
Probability 0.5 0.2 0.15 0.1 0.05
Expected Value = [?]
Round to the nearest hundredth.
Enter

Answer :

MrRoyalgo

The expected value of the winnings from the game is $4

How to determine the expected value?

The payout probability distribution is given as:

Payout ($) 2 4 6 8 10

Probability 0.5 0.2 0.15 0.1 0.05

The expected value is then calculated as:

[tex]E(x) = \sum x * P(x)[/tex]

This gives

E(x) = 2 * 0.5 + 4 * 0.2 + 6 * 0.15 + 8 * 0.1 + 10 * 0.05

Evaluate the expression

E(x) = 4

Hence, the expected value of the winnings from the game is $4

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