The probability that Mary will win a game is 0.05, so the probability that she will not win is 0.95. If Mary wins, she will be given $140; if she loses, she must pay $9. If X = amount of money Mary wins (or loses), what is the expected value of X? (Round your answer to the nearest cent.)

Question

Mathematics

Park

16 February, 01:20

The probability that Mary will win a game is 0.05, so the probability that she will not win is 0.95. If Mary wins, she will be given $140; if she loses, she must pay $9. If X = amount of money Mary wins (or loses), what is the expected value of X? (Round your answer to the nearest cent.)

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Eileen Steele · Answer 1

X = (Probability of winning x winning amount) + (probability of losing x losing amount)

The amount she pays would be a negative value.

X = (0.05 * 140) + (0.98 * - 9)

X = 7 + - 8.82

X = - 1.82