Five possibilities are equally likely and have payoffs of $2,$4,$6,$8,and $10.The expected value is:
A)$4
B)$5
C)$6
D)$7

Question

​Five possibilities are equally likely and have payoffs of $2,$4,$6,$8,and $10.The expected value is:
A)​$4
B)$5
C)$6
D)​$7

Quizplus · Accepted Answer

The expected value is calculated by multiplying each payoff by its probability and summing the results. Since all possibilities are equally likely, each has a probability of 1/5. Thus, the expected value is (1/5)*2 + (1/5)*4 + (1/5)*6 + (1/5)*8 + (1/5)*10 = 6.

​Five Possibilities Are Equally Likely and Have Payoffs of $2,$4,$6,$8,and

Five Possibilities Are Equally Likely and Have Payoffs of $2,$4,$6,$8,and