Answer
$160$.
Work Step by Step
By definition, the expected value is the sum of each outcome multiplied by its probability.
Hence here the expected value if they charge $x$: $(1-0.00050)\cdot x+0.00050\cdot (x-200000)=60\\x-100=60\\x=160$.
Thinking Mathematically (6th Edition)
by Blitzer, Robert F.
Published by
Pearson
ISBN 10:
0321867327
ISBN 13:
978-0-32186-732-2
Chapter 11 - Counting Methods and Probability Theory - 11.8 Expected Value - Exercise Set 11.8 - Page 756: 31
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