SOLUTION: In a casino game a player wins $500 with probability 0.01, wins $100 with probability 0.03, and loses $9 with probability 0.96. What is the expected value of the game from the play
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-> SOLUTION: In a casino game a player wins $500 with probability 0.01, wins $100 with probability 0.03, and loses $9 with probability 0.96. What is the expected value of the game from the play
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Question 1075664: In a casino game a player wins $500 with probability 0.01, wins $100 with probability 0.03, and loses $9 with probability 0.96. What is the expected value of the game from the players perspective? In close minus sign if the answer is negative. Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! 500(.01)+100(.03)-9(.96)=-0.64, or an expected loss of $0.64 as the value of the game from the players' perspective. ☺☺☺☺
