SOLUTION: A spinner at the State Fair is divided into three equal parts. Each section is labeled as follows: Win $1, Win $5, and Win $20. It will cost $5 to play. What is your expected value

Algebra ->  Probability-and-statistics -> SOLUTION: A spinner at the State Fair is divided into three equal parts. Each section is labeled as follows: Win $1, Win $5, and Win $20. It will cost $5 to play. What is your expected value      Log On


   

Question 1094702: A spinner at the State Fair is divided into three equal parts. Each section is labeled as follows: Win $1, Win $5, and Win $20. It will cost $5 to play. What is your expected value?

Answer by Edwin McCravy(20064) About Me  (Show Source):
You can put this solution on YOUR website!
                Net
Possibilities  Value   Probability  Expectation
   Win $1       -$4         1/3        -4/3
   Win $5        $0         1/3          0
   Win $20     +$15         1/3         +5
---------------------------------------------
                                      +11/3 = +$3.66 2/3

The Fair will lose money on this game, on the average of $3.66 2/3
per player.

Edwin