Question 1180044: Suppose you enter a contest where your probability of coming in first place is 0.21 and your probability of coming in second place is 0.24. If you come in first place, you win $55. If you come in second place, you win $35. If you don't come in first or second place, you have to pay $42. What is the expected value of this game? Round your answer to the nearest penny/cent (two decimal places).Include a negative sign, if appropriate.
Answer by ikleyn(52756)   (Show Source):
You can put this solution on YOUR website! .
The expected value of the game is 0.21*55 + 0.24*35 - (1-0.21-0.24)*42 = -3.15 dollars.
In other words, if you play this game many times, you statistically lose 3.15 dollars in each game, in average.
Solved, answered and explained.
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