Question 516916: A jar contains balls of four different colors; red, blue, yellow and green. The total balls are divides as 40% red, 30% blue, 20% yellow, and 10% green. If you are to select one ball at random. Find the expected value of your winning amount if the payments are set to be $5, $10, $20, $50 for red, blue, yellow and green ball respectively.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A jar contains balls of four different colors; red, blue, yellow and green. The total balls are divides as 40% red, 30% blue, 20% yellow, and 10% green. If you are to select one ball at random. Find the expected value of your winning amount if the payments are set to be $5, $10, $20, $50 for red, blue, yellow and green ball respectively.
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E(x) = 0.40*5 + 0.30*10 + 0.20*20 + 0.10*50
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= 2 + 3 + 4 + 5
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= $14.00
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Cheers,
Stan H.
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