In a game you win ₹10 with probability 0.2 and lose ₹2 with probability 0.8. What is your expected gain per game?

Explanation

1. 01

   $E = 10 \times 0.2 + (-2) \times 0.8 = 2 - 1.6$.

2. 02

   $= 0.4$ rupees a game: a small expected gain.