Jason is a Web page designer. He estimates that this summer, he has a 0.6 probability of making $10,000 and a 0.4 probability of making only $2,000. What is Jason's expected income this summer?
A) $12,000
B) $6,800
C) $6,000
D) $10,000

Question

Quizplus · Accepted Answer

Expected income = (probability of making $10,000) * ($10,000) + (probability of making $2,000) * ($2,000)= (0.6) * ($10,000) + (0.4) * ($2,000)= $6,000 + $800= $6,800

Jason Is a Web Page Designer