SOLUTION: Your little sister loves visits from the Tooth Fairy. Suppose half the time the Tooth Fairy leaves $1 and half the time she leaves $0.50. What is the expected value of the Tooth F

Algebra ->  Probability-and-statistics -> SOLUTION: Your little sister loves visits from the Tooth Fairy. Suppose half the time the Tooth Fairy leaves $1 and half the time she leaves $0.50. What is the expected value of the Tooth F      Log On


   

Question 1071564: Your little sister loves visits from the Tooth Fairy. Suppose half the time the Tooth Fairy leaves $1 and half the time she leaves $0.50. What is the expected value of the Tooth Fairy's payoff?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
Here, with equal probabilities, it is $0.75
E(X)=$1(0.50)+$0.50(0.50)=$0.75