Question

A farmer has $100,000 worth of cherries on the trees in his orchard. There is a 10% chance of the weather ruining his crop before harvest in which case he would lose $40,000 worth of cherries. What would be the expected value of the crop?

Answer 1

A. $60,000 B. $74,000 C. $96,000 D. $90,000

Answer 2

expected value is: x*P(x)

Answer 3

this problem is so confusing.

Answer 4

this is a bit of a confusing construct

Answer 5

i want to say 60,000

Answer 6

or ...

theres a 90% chance of getting 100,000
theres a 10% chance of getting 60,000

.9(100,000) + .1(60,000)

maybe

Answer 7

so the expected value would be 96,000

Answer 8

ok. thanks so much!

Answer 9

youre welcome