Expected Value, LOTUS & Linear Properties

Compute expected costs, rewards and transformed quantities using weighted sums and LOTUS. Apply linearity with dependent variables, diagnose invalid nonlinear substitutions, and compare models with equal marginal means. Prerequisites: discrete PMFs, basic algebra and powers. A supplied-series fact supports the final expectation-existence challenge without requiring calculus. Includes single-select and multiselect questions with worked solutions and distractor feedback.

References: 3.2.2 Definition and linearity theorem, 3.2.3 Functions and LOTUS.