SOLUTION: In a gambling game, you have a 1/100 chance of winning $48 and a 99/100 chance of losing $2. What is your expected payoff for a single play of this game?

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Question 1185796: In a gambling game, you have a 1/100 chance of winning $48 and a 99/100 chance of
losing $2. What is your expected payoff for a single play of this game?
Answer by Edwin McCravy(20060) About Me  (Show Source):
You can put this solution on YOUR website!

(1/100)(+$48) + (99/100)(-$2) =

-$1.50

If you played the game many times you'd average losing a buck and a half per game.

Edwin