SOLUTION: Suppose you are invited to play a game in which you bet​ $1 on any number from 000 to 899 . If your number comes​ up, you get ​$675 . Find the expected winn

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Question 1110287: Suppose you are invited to play a game in which you bet​ $1 on any number from 000 to 899
.
If your number comes​ up, you get ​$675
.
Find the expected winnings.
Found 2 solutions by Boreal, stanbon:
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
There are 900 choices and a 1/900 chance of getting the right number.
E(X)=674(1/900)-1(899/900). It is 674, because a dollar has already been spent.
0.7489-0.9989=-$0.25

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Suppose you are invited to play a game in which you bet​ $1 on any number from 000 to 899.
.
If your number comes​ up, you get ​$675
.
Find the expected winnings.
-----
Random "winnings".... -1......674
Probabilities::......899/900...1/900
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Expected "winnings" = (-899 + 674)/900 = -225/900 = -25 cents
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Cheers,
Stan H.
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