A taxi driver estimates that his earnings are $240 on a fine day and $320 on a wet day. What are his expected earnings on a day with probability of rain of 0.45?
Probability of raining=0.45 Probability of not raining=1-0.45=0.55 The expected earning will be given by: E(x)=240(0.55)+320(0.45) E(x)=132+144 E(x)=276
