Find the Expected Value

question 37

Multiple Choice

Find the expected value.
-The prizes that can be won in a sweepstakes are listed below together with the chances of winning each one:
$5200 (1 chance in 8900) ; $2500 (1 chance in 6400) ; $900 (1 chance in 3900) ; $100 (1 chance in 2100) .
Find the expected value of the amount won for one entry if the cost of entering is 57 cents.

• A)$100.00
• B)$0.62
• C)$1.21
• D)$0.68

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Definitions:

Europeans

People from the continent of Europe or of European descent.

Furs

Textiles made from the pelts of animals, historically significant in trade and fashion, but have become controversial due to ethical concerns regarding animal rights.

Exploratory Voyages

Journeys undertaken by explorers to discover unknown lands, map new territories, and establish contacts.

English Colonization

The process of English settlement and establishment of control over regions in North America, the Caribbean, and other parts of the world from the late 16th to the early 18th centuries.