Answer to Question #247738 in Statistics and Probability for batman

Question

Vice Ganda plans to invest 100,000 pesos for a movie block screening for a cause. He expects to sell tickets worth 150,000 pesos. But if the typhoon hits on the day of the screening, they cannot sell any tickets. If the weather forecast tells that there is a 20% possibility that there will a typhoon on the screening day, how much will he expect to gain/lose in return?

Answer 1

$$E(X)=0.2(-100000)+(1-0.2)(150000-100000)$$

$$=20000$$

He will expect to gain 20,000 pesos in return.