A union wage negotiator feels that the probabilities are $0.25$, $0.50$, $0.20$ and $0.05$ that the members of the union will get a $\$1.20$ raise in their hourly wage, $\$0.80$, $\$0.40$ or no raise at all. What is the corresponding expected raise?
My try is the following: $E(x)= 1.20(0.25) + 0.80(0.5) + 0.40(0.20) + 0(0.05) = 0.78$
I am not sure if this is the correct way or solution so I'd be glad if someone can help me out!