Inactive Tutor answered • 06/29/15
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Chance of losing $10 = 100 - 15% = 85% = 0.85
Chance of winning $30 = 15% = 0.15
Expected val = -10*0.85 +(30 - 10)*0.15 = -8.5 + 3 = -5.5
Lani J.
asked • 06/29/15Expected Value
It costs $10 to play a game. You have a 15% chance of winning. You collect $30 if you win. Otherwise you lose your $10. Find the expected value.
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