Question 1049743:
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Please help me solve this Expected Value"
A bag contains 1 gold marbles, 10 silver marbles, and 29 black marbles. Someone offers to play this game: You randomly select one marble from the bag. If it is gold, you win $4. If it is silver, you win $2. If it is black, you lose $1.
What is your expected value if you play this game?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A bag contains 1 gold marbles, 10 silver marbles, and 29 black marbles. Someone offers to play this game: You randomly select one marble from the bag. If it is gold, you win $4. If it is silver, you win $2. If it is black, you lose $1.
What is your expected value if you play this game?
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Random "winnings"::............. 4.......2......-1
Corresponding probabilities::....1/40..10/40....29
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Expected "winnings":: (4 + 20 - 29)/40 = -5/40 = -($(1/8) = -12.5 cents
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Cheers
Stan H.
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