In a game of chance, the probability of winning a $50 prize is 40 percent, and the probability of winning a $100 prize is 60 percent. What is the expected value of the prize in the game?
A) $50
B) $75
C) $80
D) $100

Question

Quizplus · Accepted Answer

The expected value is calculated by multiplying each outcome by its probability and then summing those values: (0.4 * $50) + (0.6 * $100) = $20 + $60 = $80.

In a Game of Chance, the Probability of Winning a $50