SOLUTION: numbers is a game where you bet $1 on any three digit number from 000 to 999. if your number comes up, you get $500. Find the expected winnings

Question 167759: numbers is a game where you bet $1 on any three digit number from 000 to 999. if your number comes up, you get $500. Find the expected winnings
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
numbers is a game where you bet $1 on any three digit number from 000 to 999. if your number comes up, you get $500. Find the expected winnings
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The random variable values for winning are -1 and +499
The corresponding probabilities are 999/1000 and 1/1000
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Multiply each "winning" value by its probability and add to get E(x)
(-1)(999/1000) + 499(1/1000) = -0.999 + 0.499 = -0.50 or -50 cents
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Cheers,
Stan H.

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