find the expected value of the winnings from a game that has the following payout probability…

find the expected value of the winnings from a game that has the following payout probability distribution:\npayout ($) 2 4 6 8 10\nprobability 0.64 0.18 0.12 0.04 0.02\nexpected value = ?\nround to the nearest hundredth.

find the expected value of the winnings from a game that has the following payout probability distribution:\npayout ($) 2 4 6 8 10\nprobability 0.64 0.18 0.12 0.04 0.02\nexpected value = ?\nround to the nearest hundredth.

Answer

Answer:

$3.08$

Explanation:

Step1: Recall expected - value formula

$E(X)=\sum_{i}x_ip_i$

Step2: Calculate product for first pair

$2\times0.64 = 1.28$

Step3: Calculate product for second pair

$4\times0.18=0.72$

Step4: Calculate product for third pair

$6\times0.12 = 0.72$

Step5: Calculate product for fourth pair

$8\times0.04=0.32$

Step6: Calculate product for fifth pair

$10\times0.02 = 0.2$

Step7: Sum up products

$E(X)=1.28 + 0.72+0.72 + 0.32+0.2=3.08$