SOLUTION: A bag contains 4 gold marbles, 9 silver marbles, and 23 black marbles. The rules of the game are as follows: You randomly select one marble from the bag. If it is gold, you win $5,

Algebra ->  Probability-and-statistics -> SOLUTION: A bag contains 4 gold marbles, 9 silver marbles, and 23 black marbles. The rules of the game are as follows: You randomly select one marble from the bag. If it is gold, you win $5,      Log On


   

Question 1147245: A bag contains 4 gold marbles, 9 silver marbles, and 23 black marbles. The rules of the game are as follows: You randomly select one marble from the bag. If it is gold, you win $5, if it is silver, you win $3. If it costs $1 to play, what is your expected profit or loss if you play this game?
Answer by greenestamps(13206) About Me  (Show Source):
You can put this solution on YOUR website!


Expected value: Find the probability of getting each color marble; multiply each probability by the value of that marble (winnings, minus the $1 cost of playing); and add those products.

gold marble: probability 4/36; value (-1+5) = 4
silver marble: probability 9/36; value (-1+3) = 2
black marble: probability 21/36; value -1

expected value:
4%28%284%29%2F36%29%2B%282%29%289%2F36%29%2B%28-1%29%2821%2F36%29+=+13%2F36