SOLUTION: here is the problem- A bowl contains 9 red marbles, 5 white marbles, and 3 blue marbles. If a person selects one marble from the bowl at random and draws a red marble, they lose

Algebra ->  Probability-and-statistics -> SOLUTION: here is the problem- A bowl contains 9 red marbles, 5 white marbles, and 3 blue marbles. If a person selects one marble from the bowl at random and draws a red marble, they lose       Log On


   

Question 509903: here is the problem-
A bowl contains 9 red marbles, 5 white marbles, and 3 blue marbles. If a person selects one marble from the bowl at random and draws a red marble, they lose $1.00. If a white marble is selected, they win $2.00, and if a blue one is selected, they win $3.00. WHat is the expected profit or loss for a person playing this game?
I have done this a few different ways and am still not sure of what the question is really asking me.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The probability of drawing a red is , hence the payout for drawing a red is

The probability of drawing a white is , hence the payout for drawing a white is

The probability of drawing a blue is , hence the payout for drawing a blue is

The overall expected payout is the sum of the three expected payouts caluclated above:

.

So what does that mean? If the owner of the game charges you $0.58 or less each time you play, then go for it (as long as the game owner can afford to run his loser, that is). On the other hand, if it costs $0.59 or more to play, walk away -- it is a loser for the player.

John

My calculator said it, I believe it, that settles it
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