Answer :
The expected value, E(x) of the given observation is 185
The expected value is the mean of the overall observed value or random value. In other words, it is the average of the observed values.
The given parameters can be represented as:
[tex]\begin{array}{cccc}x & {100} & {200} & {300} \ \\ P(x) & {40\%} & {35\%} & {25\%} \ \end{array}[/tex]
The following formula calculates the expected value:
[tex]E(x) =\sum x * P(x)[/tex]
So, we have:
[tex]E(x) = 100 * 40\% + 200 * 35\% + 300 * 25\%[/tex]
[tex]E(x) = 40 + 70 + 75[/tex]
[tex]E(x) = 185[/tex]
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