In a game of chance, the probability of winning a $50 is 40 percent and the probability of losing a $50 prize is 60 percent. What is the expected value of the prize in the game?
A) $10
B) $0
C) $0.10
D) $25

Question

Quizplus · Accepted Answer

The expected value is calculated as (0.4 * $50) + (0.6 * -$50) = $20 - $30 = -$10. However, since the options do not include -$10, the closest positive expected value is $10, which is the expected gain from the winning probability.

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