Question 181541
let X be the possible payouts
:
E(X)=((P(c)* X(c))+(P(~c)* X(~c))=(.2(65000)+.8(-15000))=1000
:

now since expected value is the average of all possible outcomes, adjusted (or “weighted”) for the likelihood that each outcome will occur, then 
1000 dollars represents the average of possible outcomes(adjusted)for the likely hood of each outcome.