You are trying to decide whether or not to book a cheap flight to fly home from NCSU after your final exams, but you're not sure when your last exam will be.
You think there is a 20% chance that your last exam will be scheduled after the last day that you can get a seat on the cheap flight. If it turns out that your last exam is scheduled after the last day that you can get a seat on the cheap flight, then you will have to cancel the flight, resulting in a loss to you of $150. If you can take the cheap flight home you will save $100.
Question 1. If you book the cheap flight, what is your expected gain? dollars
Question 2. If you book the cheap flight, what is the standard deviation of your gain? dollars