SOLUTION: In a certain game, the probability of the winning is 0.3; the probability of loosing is 0.7. If a player wins, the player will collect $50. If the players looses, the player will l

Algebra ->  Probability-and-statistics -> SOLUTION: In a certain game, the probability of the winning is 0.3; the probability of loosing is 0.7. If a player wins, the player will collect $50. If the players looses, the player will l      Log On


   

Question 680325: In a certain game, the probability of the winning is 0.3; the probability of loosing is 0.7. If a player wins, the player will collect $50. If the players looses, the player will lose $5. What is the expected value of this game?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
In a certain game, the probability of the winning is 0.3; the probability of loosing is 0.7. If a player wins, the player will collect $50. If the players looses, the player will lose $5. What is the expected value of this game?
-------
Random number values: 50 ; -5
Probabilities:::::::: 0.3 ; 0.7
-----
E(x) = 0.3*50 - 0.7*5 = 15 - 3.5 = $11.50
===========================
Cheers,
Stan H.
===========================