Expected Value Exercise 5
Assume that one of two possible outcomes will follow a
decision. One outcome yields a $75 payoff and has a probability of 0.3; the
other outcome has a $125 payoff and has a probability of 0.7.
In this case the expected value is _______?
EU = (0.3 x 75) + (0.7 x 125) = 110
ReplyDeleteEU= pr(one outcome)(outcome)+pr(other outcome)(other outcome)
ReplyDeleteEU= (0.3x$75)+(0.7x$125)
EU= 22.5+87.5
EU= 110
1st probability outcome yields a %75 payoff with 0.3 probability
ReplyDelete2nd probability outcome yields a $125 payoff with 0.7 probability
expected value/EV : (1st Pr) (1st payoff) + (2nd Pr) (2nd payoff
EV : (0.3)($75)+(0.7)($125) = 22.5 + 87.5 = $110
in this case, the expected value is $110
pak saya ulang ya, biar lengkaaap wakakak :D
ReplyDeleteOUTCOME 1 :
probability = 0.3 , payoff =75
OUTCOME 2:
probability = 0.7 , payoff = 125
EV = (Pr1 x X1) + (Pr2 x X2) =
(0.3 x 75) + (0.7 x 125) = $110
Known :
ReplyDeleteFirst possible outcome = $ 75
Probability First possible outcome = 0.3
Second possible outcome = $ 125
Probability Second possible outcome = 0.7
Solutions :
Expected Value = (First possible outcome ) ( Probability First possible outcome) + ( Second possible outcome ) (Probability Second possible outcome )
Expected Value = ( $ 75 * 0.3 ) + ( $ 125 * 0.7 )
= $ 22,5 + $ 87,5
= $ 110
So the expected value is $ 110
Diketahui
ReplyDeleteoutcome (1) $75, outcome (2) $ 125
Probability
P1 = 0,3
P2 = 0,7
PENYELESAIAN:
E(v) = (0.3 x 75)+(0.7 x 125)
= $ 110
the expected value is $110
ANSWER:
ReplyDelete0.3 x 75 + 0.7 x 125 = 110