SOLUTION: A game costs $3.00 to play. A player can win $1.00, $5.00, $10.00, or nothing at all. The probability of winning $1.00 is 40%, $5.00 is 20%, and $10.00 is 5%.
b) Calculate the
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Question 1145578: A game costs $3.00 to play. A player can win $1.00, $5.00, $10.00, or nothing at all. The probability of winning $1.00 is 40%, $5.00 is 20%, and $10.00 is 5%.
b) Calculate the expected value for this game
c) is it fair game? is so why?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
If you win $1 40% of the time, $5 20% of the time, and $10 5% of the time, then you win nothing 35% of the time. But since you pay $3 to play every time, you lose $3 35% of the time, $2 40% of the time and you win $2 20% of the time and $7 5% of the time.
Minus a buck five minus 80 cents plus 40 cents plus 35 cents is minus a buck ten.
Sucker Bet
John
My calculator said it, I believe it, that settles it
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