4. Incorrect. The answer is true, not false.

 

The probability function of X is P(x) = 1/6, x = 1,2,3,4,5,6. We know that E[H(X)] = ∑ H(x)p(x) where H(X) is a function of X. In this particular case, H(X) = X2. First of all, we have to calculate E[X2] in order to calculate E[2X2 - 5].

 

E[X2] = 12*(1/6) + 22*(1/6) + 32*(1/6) + 42*(1/6) + 52*(1/6) + 62*(1/6) = 91/6

 

Then, by applying some theorems on expectations, we have that:

 

E[2X2 - 5] = 2E(X2) - 5 = 2*(91/6) - 5 = 76/3 ≈ 25 of US$ 2,500.