Suppose a basketball player has made 217 out of 302 free throws. if the player makes the next 3 free throws, i will pay you $23. otherwise you pay me $15. step 1 of 2 : find the expected value of the proposition. round your answer to two decimal places. losses must be expressed as negative values.

-$0.90

Step-by-step explanation:

There are only two possible outcomes, winning $23 (W) or losing $15 (L). Therefore:

The probability of the player making his next 3 free throws (P(W)) is:

The probability of the player NOT making his next 3 free throws (P(L)) is:

Expected value (EV) is given by the payoff of each outcome multiplied by its probability:

The expected value of the proposition is -$0.90