Example 1
What is the expected value from rolling a 20-sided die?
Example 2
You flip a coin 4 times. What is the expected value for the number of heads?
Example 3
Every month, there is a raffle where each ticket costs $10, and the payout would be $3000. There are only 400 tickets available. Is this a good gamble?
chance of winning $3000. What is the expected value?Example 4
Which of these two investments offers a better return?
Company A: 40% chance of doubling your money; requires $10,000 initial investment.
Company B: 51% chance of receiving $25,000 in returns. Requires an initial investment of 15% of $25,000.
Example 5
What is expected value of the following table:
| Probability | Outcome |
| 0.30 | 24 |
| 0.27 | 33 |
| 0.34 | 15 |
| 0.09 | 1000 |