The payoff (X) for a lottery game has the following probability distribution. Find the expected value...

Question

Question

math Statistics-And-Probability

Answer 1

Answer #1

The expected value of discrete random variable is $E(X)=\sum xP(X=x)$ .

Here,

$E(X)=\$0(0.8)+\$5(0.2)\\ {\color{Blue} E(X)=\$1.0}$

The third choice is correct.

Answer 2

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