SOLUTION: a game is played by selecting one bill at random from a bag that contains ten $1 bills, five $2 bills, three $5 bills, and one $10 bill, and one $100 bill. The player gets to keep

Question 181542: a game is played by selecting one bill at random from a bag that contains ten $1 bills, five $2 bills, three $5 bills, and one $10 bill, and one $100 bill. The player gets to keep the selected bill. There is a $20 charge to play the game. What is the expected value? what does this value mean?
Answer by Mathtut(3670) (Show Source): You can put this solution on YOUR website!
P(1)=10/10=1/2
P(2)=5/20=1/4
P(5)=3/20
P(10=1/20
P(100)=1/20
:
X(1)-payout if X is 1
X(2)-payout if X is 2
X(5)-payout if X is 5
X(10)payout if X is 10
X(100)payout if X is 100
:
the probability of each event * the payout of each event is added all up to give the expected value of X
:

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