Question

A company gives each worker a cash bonus every Friday, randomly giving a worker an amount with these probabilities: $10 0.9, $50 0.1. Over many weeks, what is a worker's expected weekly bonus?

Answer 1

Answer:

$14

Explanation:

The computation of the worker's expected weekly bonus is shown below:

X i.e cash bonus = $10      $50

Probability of X = 0.9 and 0.1

Now the probability of X = 0.9 + 0.1 = 1

Now the worker expected weekly bonus is shown below:

= $10 × 0.9 + $50 × 0.1

= $9 + $5

= $14

Hence, the worker expected weekly bonus is $14