Back to Calculate the expected value of a random variable — Problem 4 · Task Set 28

Exercises: Calculate the Expected Value of a Random Variable

Work through each section in order. Compute expected value with $E(X) = \sum x \cdot P(X = x)$: multiply each value by its probability, then add. Show each term as "value times its probability" before summing. For payoff problems, write losses as negative values. Remember that $E(X)$ is the mean of the distribution and need NOT be a value the variable can actually take.

Grade 11·22 problems·~35 min·Common Core Math - HS Statistics and Probability·group·hss-md-a-2
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A

Fluency Practice

Compute each expected value as an explicit weighted sum. Write each term as value times its probability before adding.

1.

A carnival game pays out an amount XX per play according to the distribution below.

xx (dollars)025
P(X=x)P(X=x)0.60.30.1

If a player plays this game many, many times, what is the long-run average payout per play (in dollars)? Compute E(X)E(X).