DhirenN300579 DhirenN300579
  • 30-10-2022
  • Mathematics
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The payoff (Y) for a lottery game has the following probability distribution.Payoff, XProbability$00.8$50.2What is the expected payoff?

The payoff Y for a lottery game has the following probability distributionPayoff XProbability008502What is the expected payoff class=

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KenleighV722052 KenleighV722052
  • 30-10-2022
[tex]\begin{gathered} \text{Expected payoff}=\Sigma X\cdot P(X) \\ \\ \text{Expected payoff}=0\cdot0.8+5\cdot0.2 \\ \text{Expected payoff}=0+1 \\ \text{Expected payoff}=1 \end{gathered}[/tex]

Then, the expected payoff (expected value) from the given probability distribution is $1

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