Question 321770: please help! i've done several simpler ones on my own but i am stuck on this one. A carnival worker is tempting to play his game. He has a secret box which contains twenty $1 bill, ten $5 bills, and five $10 bills. you can draw one bill out per game; however, the cost of the game is $5. fill in the table for the profit you might win
Gain, x
Probability, P(x)
i can't figure out how to draw the distribution table on here but there are three colums and two rows:(
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A carnival worker is tempting to play his game.
He has a secret box which contains twenty $1 bills, ten $5 bills, and five $10 bills.
You can draw one bill out per game; however, the cost of the game is $5.
Fill in the table for the profit you might win
Gain x:...........-4........0.........5
Probability P(x)..20/35....10/35.....5/35
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Profit = [20*-4+10*0 + 5*5]/35 = [-80+25]/35 = -55/35 = -11/7 = -$1.57
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Question: where did the 35 value come from?
The 35 is the common denominator for each of the P(x) factors.
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it also asks what is the expected value of the game?
The expected profit is a loss of $1.57.
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Cheers,
Stan H.
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