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?

Question

Mathematics

Hamlet

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?

+4

Answers (1)

Know the Answer?

Anthony Klein · Answer 1

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