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12 February, 03:08

In a game of chance, the probability of winning a $50 prize is 40 percent, and the probability of winning a $100 prize is 60 percent. what is the expected value of a prize in the game

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  1. 12 February, 07:01
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    Expected value

    E[x] = ∑ xP (x) = 50*0.4+100*0.6 = $80

    The expected value of a prize is $80.
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