A game has 3 possible outcomes, with probabilities p1, p2, and p3. The amount of money that you will win or lose for each outcome is v1, v2, and v3, respectively. What is the expression p1v1 + p2v2 + p3v3 equal to?
We have the following given p1 - probability for outcome 1 p2 - probability for outcome 2 p3 - probability for outcome 3 v1 - amount of money that you will win or lose for outcome 1 v2 - amount of money that you will win or lose for outcome 2 v3 - amount of money that you will win or lose for outcome 3
Therefore, p1v1 + p2v2 + p3v3 is the average money you win or lose in playing the game.
