Respuesta :
We want to find the expected value for Jessie on the come out roll.
The expected value is EV = $0.50
We know that for an event with outcomes {x₁, x₂, ..., xₙ}, each with probability {p₁, p₂, ..., pₙ}, the expected value is given by:
EV = x₁*p₁ + x₂*p₂ + ... + xₙ*pₙ
Where the probabilities are written in decimal form.
We have the outcomes:
x₁ = winning $5.
p₁ = 0.29
x₂ = losing $5
p₂ = 0.19
x₃ = not win nor lose
p₃ = 1 - 0.19 - 0.29 = 0.52
Then the expected value is:
EV = $5*0.29 - $5*0.19 + $0*0.52 = $0.50
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