Find the Expected Value of the Following Probability Distribution

A stockbroker estimates that at the end of the year, there is a 40% chance a stock will be worth $50, a 35% chance it will be worth $60 and a 25% chance it will be worth $70.
What expected value does this broker assign to this stock's end-of-the-year price?

• $58.50

• $60.00

• $62.50

• $65.00

In a certain community, 30% of households have 1 child, 43% have 2 children, and 27% have 3 children. If a household is selected at random, what is the expected number of children in that household? HINT: A Probability table may be helpful.

• 2.00

• 2.13

• 1.97

• 1.27

The table above shows a television station's advertisement sales. The distribution of sales for one 24-hour day is given. Solve for the mean. Round to the nearest hundredth.

• 31.8

• 15.68

• 0.20

• 1.00

Given the probability model in the table below, what is the expected value of the random variable?
  X        50          20        5
P(X)     0.1         0.3      0.6

• 14

• 4.67

• 5

• 7.5

• A

• B

• C

• D

• A

• B

• C

• D

Find the mean (expected value) of the probability distribution. (HINT: use the Delta Math calculator or your graphing calculator)

• 85

• 83.2

• 87.1

• 84.4

A stockbroker estimates that at the end of the year, there is a 40% chance a stock will be worth $50, a 35% chance it will be worth $60 and a 25% chance it will be worth $70. Create a table to find what expected value does this broker assign to this stock's end-of-the-year price?

(a)  

Find the mean (expected value) of the probability distribution.

• 85

• 83.2

• 87.1

• 84.4

A small store keeps track of the number X of customers that make a purchase during the first hour that the store is open each day. Based on the records, X has the following probability distribution. What is the average number of customers that the owner can expect to make a purchase in the first hour of opening?

• 0.2

• 1.4

• 2.0

• 3.0