IB skill practice

Calculate expected monetary value

Use outcome values and probabilities to calculate an expected payoff.

Paper 1, Paper 2 5 marks Difficulty 5

Calculate expected monetary value - technology-output use

A transport timing survey option pays 82 if successful and -16 otherwise. The success probability is 0.43. Calculate the expected monetary value. Confirm the interpretation before entering the result. Enter the requested value and choose the interpretation that matches the result.

Worked practice: result and interpretation

Calculate the requested result first, then choose the interpretation that follows from it.