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You
Answered:
 | Take
the sum of the numerical values for the outcomes after weighting
each by the probability that it will occur. |
Correct
The problem is representing the average outcome of an action that
leads to several outcomes that occur by chance. The probability
of each outcome is known, and each outcome has a numerical value.
The answer is to take
the sum of the numerical values after weighting each by the probability
that it will occur.
Example: an action
can lead to three outcomes
| Outcome
| Value
of outcome
| Probability
of outcome
| Product
of value and probability
|
|---|
| A | 100 | .5 | 50 |
| B | 200 | .3 | 60 |
| C | 50 | .2 | 10 |
|
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The sum of the rows
in the right hand column is 50+60+10=110, which is the average
outcome, also known as the "expected outcome."
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