SOLUTION: A person spins the pointer and is awarded the amount indicated by the pointer. In a pie chart there is half of the pie at $2, the other half is split in two one being $10 and the

Algebra ->  Probability-and-statistics -> SOLUTION: A person spins the pointer and is awarded the amount indicated by the pointer. In a pie chart there is half of the pie at $2, the other half is split in two one being $10 and the       Log On


   

Question 628489: A person spins the pointer and is awarded the amount indicated by the pointer.
In a pie chart there is half of the pie at $2, the other half is split in two one being $10 and the other being $15,
It costs $8 to play the game. Determine:
The expectation of a person who plays the game.
The fair price to play the game
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Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

half of the pie at $2, 1/4 at $10 and 1/4 at $15... It costs $8 to play the game

 

Expected "winnings" = -6%281%2F2%29+%2B+2%281%2F4%29+%2B+7%281%2F4%29 = -.75¢

The fair price to play the game:%282-x%29%281%2F2%29+%2B+%2810-x%29%281%2F4%29+%2B+%2815-x%29%281%2F4%29 = 0

%282-x%29%281%2F2%29+%2B+%2810-x%29%281%2F4%29+%2B+%2815-x%29%281%2F4%29 = 0 |Multiplying thru by 4 so as all denominators = 1

    4 - 2x + 10 - x + 15 - x = 0

               29 = 4x

                x = 29/4 = $7.25