% LMEx030503_4th
% Example 3.5.3 Page 178 in
% Larsen & Marx (2006) Introduction to Mathematical Statistics, 4th edition
% Written by Eugene.Gallagher@umb.edu for EEOS601
% http://alpha.es.umb.edu/faculty/edg/files/edgwebp.html
% Revised 1/12/2011
% DJ bet is $5 with p=1/1000;payoff 700:1. What is the expected value?
p=1e-3;
Win=3500;Loss=-5;
Ex=Win*p+Loss*(1-p);
fprintf('The Expected Value is $%6.2f\n',Ex)