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# finding the expected value of owning a defibrillator

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Suppose it costs \$2,500 to buy a defibrillator. Find the expected value of owning a defibrillator if there is a 4% probability that Silver's will lose a lawsuit regarding its operation, with each lawsuit resulting in Silver's being liable in the amount of \$1,000,000.

Need to solve a problem using E(X) = âˆ‘xP(x) Hint:Add constant value to âˆ‘(x) to get total cost.
Please provide explanation (text) for each step taken for someone who doesn't know statistics to understand what is done & why. Also please enplane what is x. P(x), etc.

https://brainmass.com/statistics/normal-distribution/finding-the-expected-value-owning-defibrillator-575646

#### Solution Preview

My answer is as follows, I will appreciate if you can award me one more credit if you satisfy because it is not a one credit question.

Step 1: If the defibrillator works after purchase, then the value of owning a ...

#### Solution Summary

The solution gives detailed steps on finding the expected value of owning a defibrillator. All formula and calculations are shown and explained.

\$2.49