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Course: High school statistics?>?Unit 7
Lesson 4: Expected value- Mean (expected value) of a discrete random variable
- Mean (expected value) of a discrete random variable
- Interpreting expected value
- Interpret expected value
- Expected payoff example: lottery ticket
- Expected payoff example: protection plan
- Find expected payoffs
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Mean (expected value) of a discrete random variable
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Problem
A construction company is considering submitting bids for two contracts. It will cost the company to prepare and submit the bids, and if won, each bid would produce of income to the company. The company estimates that it has a chance of winning any given bid.
Here is the probability distribution of the number of bids the company wins, and the amount of money the company profits from the bids.
Probability |
Calculate the mean of .