document.write( "Question 1192577: A friend offers you the following deal: for a $10 fee you can pick an envelope from a box containing 100 identical envelopes. However, each envelope has a different prize inside. Ten of the envelopes contain a check for $6, eighty contain a check for 8$, six contain a check for $12, and four contain a check for 40$. What is your expected loss or gain if you take your friend up on their deal? \n" ); document.write( "

Algebra.Com's Answer #824447 by ikleyn(52781) $\"\"$ $\"About$

You can put this solution on YOUR website!
.
\n" ); document.write( "A friend offers you the following deal: for a $10 fee you can pick an envelope from a box
\n" ); document.write( "containing 100 identical envelopes. However, each envelope has a different prize inside.
\n" ); document.write( "Ten of the envelopes contain a check for $6, eighty contain a check for 8$, six contain a check for $12,
\n" ); document.write( "and four contain a check for 40$.
\n" ); document.write( "What is your expected loss or gain if you take your friend up on their deal?
\n" ); document.write( "~~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "The expected prize amount is\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "     = 9.32  dollars.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Subtract from it 10 dollars, what you pay for the deal.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "You will see that you lose  10-9.32 = 0.68 dollars = 68 cents at each deal, in average, if you do/repeat it many times.\r\n" );
document.write( "

\r
\n" ); document.write( "\n" ); document.write( "Solved and explained.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

\n" );