Refer to the Following Table Showing the Probability Distribution of Payoffs

question 49

Multiple Choice

Refer to the following table showing the probability distribution of payoffs from an activity to answer the question below: $$\begin{array} { c c c } \text { Units } & \text { Payoff } & \text { Prabability } \\\hline 1 & \$ 30 & 10 \% \\\mathbf { 2 } & 40 & 25 \% \\3 & 60 & 30 \% \\4 & 50 & 20 \% \\5 & 10 & 15 \% \\\hline\end{array}$$ What is the expected value?

• A)16.5
• B)28
• C)36.5
• D)42.5
• E)49

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Definitions:

Add Values

The operation of performing addition to increase or combine numeric quantities.

Ratio Scale

A quantitative scale of measurement that includes a defined zero point, equal intervals, and the ability to express quantities as multiples of one another.

A Process

A sequence of measures or procedures followed to attain a specific goal.

Population

In statistics, a population refers to the entire group of individuals or instances about whom we wish to draw conclusions.