7. Probability
7.05 Expectation and fair value
Interactive practice questions
What is the expected value of an experiment ?
The sum of the probabilities of all the possible events in an experiment.
A
The sum of all the amounts gained and lost from each possible event occurring in an experiment.
B
The expected gain or loss of an experiment over the long run.
C
Easy
< 1min
Complete the following sentences.
Easy
< 1min
The expected value of a game is $-\$3.50$−$3.50 and the cost to play the game is $\$10.00$$10.00.
What is the fair price to play the game?
Easy
< 1min
The expected value of a game is $-\$4.00$−$4.00 and the cost to play the game is $\$5.00$$5.00.
What is the fair price to play the game?
Easy
< 1min
Sign up to access Practice Questions
Get full access to our content with a Mathspace account