5. Quantitative Reasoning
Expectation Problems — Quiz
Test your understanding of expectation problems with 5 practice questions.
Practice Questions
Question 1
A game involves drawing a card from a standard deck of 52 cards. If you draw an ace, you win $$ \$20 $. Otherwise, you lose $ \$1 $$. What is the expected value of playing this game once?
Question 2
A company is deciding whether to invest in a new product. There is a $ 40\% $ chance of making a profit of $$ \$50,000 $ and a $ 60\% $ chance of incurring a loss of $ \$10,000 $$. What is the expected financial outcome of investing in this new product?
Question 3
A student is taking a multiple-choice test with 10 questions. Each question has 4 options, and only one is correct. If the student guesses randomly on every question, what is the expected number of correct answers?
Question 4
A charity is selling raffle tickets for $$ \$5 $ each. There are 200 tickets sold. The prizes are one $ \$200 $ gift card, and two $ \$50 $$ gift cards. What is the expected profit or loss for a person who buys one ticket?
Question 5
A game involves rolling a fair four-sided die (tetrahedron) with faces numbered 1, 2, 3, 4. If you roll a 4, you win $$ \$12 $. Otherwise, you lose $ \$4 $$. What is the expected value of playing this game once?