SOLUTION: Can you please help me with this probability question... A person spins the pointer and is awarded the amount indicated by the pointer. It costs $5 to play the game. The diagram

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Question 563757: Can you please help me with this probability question...
A person spins the pointer and is awarded the amount indicated by the pointer.
It costs $5 to play the game. The diagram shows a circle divided into 3 parts. The pointer points to the 1/2 section marked $2. The 1/4 section is marked $20, and the other 1/4 section is marked $5.
Determine:
The expectation of a person who plays the game.
The fair price to play the game.
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
A person spins the pointer and is awarded the amount indicated by the pointer.
It costs $5 to play the game. The diagram shows a circle divided into 3 parts. The pointer points to the 1/2 section marked $2. The 1/4 section is marked $20, and the other 1/4 section is marked $5.
Determine:
The expectation of a person who plays the game.
E(x) = (1/2)2 + (1/4)20 + (1/4)5 = 1 + 5 + 5/4 = $7.25
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The fair price to play the game.::$7.25
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Cheers,
Stan H.