Question 436502: Blue Chips and Red Chips A bag contains 3 blue chips and 2 red chips. Chi and Dolly play the following game. Chi selects one chip at random from the bag. If Chi selects a blue chip, Dolly gives Chi $5. If Chi selects a red chip, Chi gives Dolly $8.
* a) Determine Chi’s expectation.
* b) Determine Dolly’s expectation.
You can put this solution on YOUR website!
Blue Chips and Red Chips A bag contains 3 blue chips and 2 red chips. Chi and Dolly play the following game. Chi selects one chip at random from the bag. If Chi selects a blue chip, Dolly gives Chi $5. If Chi selects a red chip, Chi gives Dolly $8.
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Random gain values for Chi: 5, -8
Corresponding Probabilities: 3/5, 2/5
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* a) Determine Chi’s expectation.
E(x) = 5(3/5)-(8)(2/5) = 3-16/5 = -1/5 = -20 cents
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* b) Determine Dolly’s expectation.
Ans: +20 cents
Found 2 solutions by stanbon, risky38:
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Blue Chips and Red Chips A bag contains 3 blue chips and 2 red chips. Chi and Dolly play the following game. Chi selects one chip at random from the bag. If Chi selects a blue chip, Dolly gives Chi $5. If Chi selects a red chip, Chi gives Dolly $8.
--------------------
Random gain values for Chi: 5, -8
Corresponding Probabilities: 3/5, 2/5
------
* a) Determine Chi’s expectation.
E(x) = 5(3/5)-(8)(2/5) = 3-16/5 = -1/5 = -20 cents
--------------------------------------------------------
* b) Determine Dolly’s expectation.
Ans: +20 cents
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Cheers,
Stan H.
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Answer by risky38(1)  (Show Source):
You can put this solution on YOUR website! Blue Chips and Red Chips A bag contains 3 blue chips and 2 red chips. Chi and Dolly play the following game. Chi selects one chip at random from the bag. If Chi selects a blue chip, Dolly gives Chi $5. If Chi selects a red chip, Chi gives Dolly $8.
* a) Determine Chi’s expectation.
* b) Determine Dolly’s expectation.
You can put this solution on YOUR website!
Blue Chips and Red Chips A bag contains 3 blue chips and 2 red chips. Chi and Dolly play the following game. Chi selects one chip at random from the bag. If Chi selects a blue chip, Dolly gives Chi $5. If Chi selects a red chip, Chi gives Dolly $8.
--------------------
Random gain values for Chi: 5, -8
Corresponding Probabilities: 3/5, 2/5
good luck risky
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* a) Determine Chi’s expectation.
E(x) = 5(3/5)-(8)(2/5) = 3-16/5 = -1/5 = -20 cents
--------------------------------------------------------
* b) Determine Dolly’s expectation.
Ans: +20 cents
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