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Ive watched the lecture on expected values (thank you!) and understood it but the BPP textbook they work it out in a far more complicated way by working out the present values and joint probabilities of two years.
Is this necessary?
Not really.
There was once one question where they gave you the probability of something happening in 1 year and then the probability of something happening in the second year.
For example, suppose the probability of getting 100 in the first year was 0.4, and the probability of getting 100 in the second year was 0.3.
All you could need to know (but is not to likely) is that to get the probability of both things happening, you multiply the probabilities together.
So in my little example, the probability of getting 100 in the first year and also getting 100 in the second year is 0.4 x 0.3 = 0.12
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