SOLUTION: What is your expected value for a game whose probabilities and outcomes are given in the following table? Probability Profit 0.1 You win 1.1 times your wager. 0.5 You win you

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: What is your expected value for a game whose probabilities and outcomes are given in the following table? Probability Profit 0.1 You win 1.1 times your wager. 0.5 You win you      Log On


   

Question 1152970: What is your expected value for a game whose probabilities and outcomes are given in the following table?

Probability Profit
0.1 You win 1.1 times your wager.
0.5 You win your wager.
0.1 You lose 2 times your wager.
0.3 You win nothing.
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
wager=w
E(X)= (1.1W-W)(0.1)+ 0.5 (W-W)+0.1(-2W-W)+ (0.3)(-W)
=0.01W+0-0.3W-0.3W
=-0.59W