Asked by stacie Johnson on Apr 25, 2024
Verified
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
Probabilities
The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.
- Master the concept of expected value and the approach to its calculation in uncomplicated circumstances.
Verified Answer
AM
Asemahle MajekeApr 26, 2024
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:
$10 \times 0.5 + 20 \times 0.4 + 30 \times 0.1 = 5 + 8 + 3 = 16$. Therefore, the best choice is B.
$10 \times 0.5 + 20 \times 0.4 + 30 \times 0.1 = 5 + 8 + 3 = 16$. Therefore, the best choice is B.
Learning Objectives
- Master the concept of expected value and the approach to its calculation in uncomplicated circumstances.