<PRE><B>Question 467395</B>
Expectation = (1/2)*(2)+(1/4)*(10)+(1/4)*(15) - 8 = 7.25-8 = -0.75



This means that you expect to lose about 75 cents per game



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Determining Fair price:


Let x = price to play game



Fair price means expectation = 0



Expectation = (1/2)*(2)+(1/4)*(10)+(1/4)*(15) - x = 0


7.25 - x = 0


x = 7.25



Fair price = 7.25 dollars</PRE>