SOLUTION: A person randomly selects one of four envelopes. Each envelope contains a check that the person gets to keep.​ However, before the person can select an​ envelope, he or she mus

Algebra ->  Probability-and-statistics -> SOLUTION: A person randomly selects one of four envelopes. Each envelope contains a check that the person gets to keep.​ However, before the person can select an​ envelope, he or she mus      Log On


   

Question 1137610: A person randomly selects one of four envelopes. Each envelope contains a check that the person gets to keep.​ However, before the person can select an​ envelope, he or she must pay​ $15 to play. Determine the​ person's expectation if the checks in the envelopes are for​ $0, ​$3, ​$7​, and ​$22.
Answer by ikleyn(52832) About Me  (Show Source):
You can put this solution on YOUR website!
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Mathematical expectation is to get  %280%2B3%2B7%2B22%29%2F4 = 32%2F4 = 8 dollars from the envelopes.


Statistically, it is loosing game.