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Econometrics

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Expected Value - Reward for Good Grades

EMETRC-FEY6VW

Suppose a student parents offer them a bonus based on their GPA, such that:

$$BONUS = 50 + 100GPA$$

What is the expected value of the bonus if GPA can take on the whole values of $(0, 1, 2, 3, 4)$ with respective probabilities of $(1/10, 1/10, 2/5, 3/10, 1/10)$?

A

$3$

B

$50$

C

$150$

D

$250$

E

$350$