SOLUTION: If you pay $20 to enter a game and the winning a prize money of $1000 is 1 out of 200, $500 is 1 out of 100, $200 is 1 out of 50, $100 is 1 out of 20. Do you lose or win in a long

Question 573802: If you pay $20 to enter a game and the winning a prize money of $1000 is 1 out of 200, $500 is 1 out of 100, $200 is 1 out of 50, $100 is 1 out of 20. Do you lose or win in a long run?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If you pay $20 to enter a game and the winning a prize money of $1000 is 1 out of 200, $500 is 1 out of 100, $200 is 1 out of 50, $100 is 1 out of 20. Do you lose or win in a long run?
----
E(x) = (1/200)*1000 + (1/100)*500 + (1/50)200 + (1/20)*100 - (83/100)20
-----
= (1/200)*1000 + (2/200)*500 + (4/200)200 + (10/200)*100 - (183/200)20
------------------
= (1000+1000+800+1000-3660)/200 = $0.70
--------------
> 0
----
You win.
===========================
Cheers,
Stan H.
============
RELATED QUESTIONS
Suppose you buy 1 ticket for $2 out of a lottery of 500 tickets where the prize for the... (answered by ewatrrr,stanbon)

Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the... (answered by drk)

Suppose you buy 1 ticket for $1 out of a lottery of 3000 tickets. If the prize for the... (answered by stanbon)

In a game of change if you purchase one ticket out of the 100 tickets being sold at a... (answered by stanbon,robertb)

Suppose you buy 1 ticket for $1 out of a lottery of 1,000 tickets where the prize for the (answered by stanbon)

You buy a ticket for $1 out of a lottery of 1,000 tickets where the prize for the one... (answered by lynnlo,stanbon)

Solve for x. 1000 = x + 1/5x. I have tried deducting 20% from 1000 but the math doesn't... (answered by DrBeeee)

Johanna is expecting to win 1 million dollars in a certain game. The probability of... (answered by greenestamps)

if the probability of winning a game is 1/4 find the probability of winning at least 3... (answered by stanbon)