document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1180090>Question 1180090</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Two teams, A and B, are about to play a game. Previous records show that A has an 80% chance of winning, while B has a 20% of winning. Spectators can either choose to buy regular tickets or special tickets. A spectator with a special ticket will receive a refund of $2 if team A wins and a refund of $5 if team B wins. How much extra, minimally, should the special ticket cost to cover the expected value of the refunds offered?\r<BR>\n" );
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document.write( "a. 16.00<BR>\n" );
document.write( "b. $2.60<BR>\n" );
document.write( "c. $26.00<BR>\n" );
document.write( "d. $3.00<BR>\n" );
document.write( "e. $10.00 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #809683 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=809683\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i think it will be .8 * 2 + .2 * 5 = 1.6 + 1 = 2.6.<BR>\n" );
document.write( "that would be selection b.\r<BR>\n" );
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document.write( "the idea is that 80% of the time A will win and 20% of the time B will win.\r<BR>\n" );
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document.write( "if the teams played 100 games, then team A would win 80 games and team B would win 20 games, assuming the probabilities held true.\r<BR>\n" );
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document.write( "to cover the cost of of rebating the bet, then 2 * 80 = 160 is returned when team A wins and 5 * 20 = 100 is returned when team B win.   that's a total of 160 + 100 = 260 that's returned for the 100 games.<BR>\n" );
document.write( "divide that by 100 to get an average of 2.60 returned for each game played.<BR>\n" );
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