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16 July, 09:55

In a game, you have a 1/50 probability of winning $53 and a 49/50 probability of losing $3 What is your expected value?

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  1. 16 July, 10:12
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    Expected Value is $4

    Step-by-step explanation:

    Expected value is the probabilities multiplied by the value of each of those probabilities. In our case

    EV = (1/50) * 53 + (49/50) * -3

    EV = 1.06 - 2.94

    EV = - 1.88
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