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2 November, 19:33

In a game of chance, the probability of winning a $50 is 40% and the probability of losing a $50 prize is 60%. what is the expected value of the prize in the game? $15 $25 $0 - $10

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  1. 2 November, 21:09
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    To calculate expected value,

    We can add up the probability of all possible events.

    The 2 possible events are either winning $50 or losing the prize, which is $ - 50

    Expected value =

    50 x 40 % + (-50) x 60%

    = $-10

    So the answer is $-10
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