Question 383151: A box contains two $1 bills and three $5 bills. You pay $3.25 for the privilege of drawing one bill from the box. What is the mathematical expectation of this game?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A box contains two $1 bills and three $5 bills. You pay $3.25 for the privilege of drawing one bill from the box. What is the mathematical expectation of this game?
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# of bills is 5
P(drawing a $1 bill) = 2/5
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P(drawing a $5 bill) = 3/5
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Random Number (gain to player) : (1-3.25), (5-3.25)
Corresponding Probabilities:::::: 2/5, 3/5,
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E(x) = (2/5)(-2.25) + (3/5)(1.75)
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E(x) = $0.15
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Cheers,
Stan H.
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