Suppose a basketball player has made 392 out of 441 free throws. If the player makes the next 3 free throws, I will pay you $6. 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.

-$0.237

Explanation:

The player making a single shoot is 392/441 = 0.889

That makes a percentage of 88.9%.

The probability of making the next 3 shots as 0.889 * 0.889 * 0.889 = 0.703.

The probability of him not making all of the next 3 shot is 1 - 0.703

So now to find the expected value,

P (makes all the three shots) * (Value when you win) + P (misses the three shots) * (value when you lose)

0.703 * $6 + (1 - 0.703) * (-$15)

$4.218 - $4.455

= - $0.237