SOLUTION: In a certain game, there is a 0.7 probability that you win $20 and 0.3 probability that you lose $40. Find the expected value.

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Question 605759: In a certain game, there is a 0.7 probability that you win $20 and 0.3 probability that you lose $40. Find the expected value.
Found 2 solutions by mathie123, stanbon:
Answer by mathie123(224) About Me  (Show Source):
You can put this solution on YOUR website!
Expected Value is the sum of all the probabilities multiplied by the amount.
So in our case:
E%28x%29=0.7%2A20%2B0.3%2A40
(I will let you do this calculation)
Hopefully this helps!

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
In a certain game, there is a 0.7 probability that you win $20 and 0.3 probability that you lose $40. Find the expected value.
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E(x) = 0.7*20 + 0.3*40 = 14+12 = $26.00
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Cheers,
Stan H.