The expected value is the return you expect from some kind of investment/action.
When we are presented with probabilty of an action, we can take the expected value of the whole table [investment] by taking the sum of the products of probability and the action.
Here, we want products of "probability" and "profit". Then we sum it. Shown below:
[tex]\begin{gathered} E=(0.1)(1)+(0.2)(1.5)+(0.4)(2)+(0.2)(4)+(0.1)(10) \\ E=3 \end{gathered}[/tex]
Expected value of profit = 3 million dollars
