QQuestionMathematics
QuestionMathematics
A game is said to be "fair" if the expected value for winnings is 0, that is, in the long run, the player can expect to win 0. Consider the following game: The game costs $1 to play and the winnings are $5 for red, $3 for blue, $2 for yellow, and nothing for white. The following probabilities (found in the table) apply. What are your expected winnings? Does the game favor the player or the owner?
6 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1
Expected\ Value = \sum_{i=1}^{n} (Outcome_{i} \times Probability_{i})
First, let's calculate the expected value for each color. The expected value is the sum of the product of each outcome's value and its corresponding probability. We use the formula:
Final Answer
Expected\ Value = \sum_{i= 1}^{n} (Outcome_{i} \times Probability_{i})
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students