Expected Value

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?

• 2.00

• 2.13

• 1.97

• 1.27

Is your expected value always going to be what happens in real life?

• yes

• no

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

A game consists of rolling a colored die with three red sides, two green sides, and one blue side. A roll of a red loses. A roll of green pays $2.00. A roll of blue pays $5.00.   The charge to play the game is $2.00. What is the expected value

• $0

• -$0.50

• $.67

• $-1.50

What is the expected value of the spinner?

• 6.25

• 6.5

• 4.75

• 13

What is expected value of the spinner?

• 3.3

• 6

• 3.7

• 11

What is the expected value?

• -3.7

• 5.9

• 1.44

• -1.1

What is the expected value of the spinner?

• 1.375

• 1.875

• 2.5

• 1.65

If the expected value of a game is negative, are you expected to win money on the game?

• yes

• no

Suppose you pay $1.00 to roll a fair die with the understanding you will get $3.00 back rolling a 4 or a 2, and nothing otherwise. Is this a fair game?

• yes

• no