Answer: The employee's expected earnings is 78.5.
Step-by-step explanation:
Since we have given that
$ Probability
0 0.07
25 0.12
50 0.17
75 0.14
100 0.28
125 0.18
150 0.04
We need to find the employee's expected earnings.
As we know the formula for "Expectation":
[tex]E(x)=0\times 0.07+25\times 0.12+50\times 0.17+75\times 0.14+100\times 0.28+125\times 0.18+150\times 0.04\\\\E(x)=0+3+8.5+10.5+28+22.5+6\\\\E(x)=78.5[/tex]
Hence, the employee's expected earnings is 78.5.
