Question
924/2017 Points possible: 1. Total attempts: 1 person must pay $6 to play a certain game at the casino. Each player has a pro 12, for a net gain of$6 (the net gain isthe amount won 12 minus the cost of playing 6 Each player has a probability of 0.82 of losing the game, for a net loss of of playing since nothing else is lost). $6 (the net loss is simply the cost What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Value is negative, be sure to include the "-" sign with the answer. Express the answer with tw places with two decimal Expected Value $ plays this game a very large number of times over the years, do we expect him/her to comeu financially ahead or behind? behind O ahead 14 Points possible: 1. Total attempts: 1 Tickets for a raffle cosr $16. There were 832 tickets sold. One ticket will be randomly selected as the winner, and that person wins $1600 and also the person is given back the cost of the ticket. For someon who buys a ticket, what is the Expected Value (the mean of the distribution)?
Explanation / Answer
13. Expected value an event = Sum of (outcome x probability)
So, the expected value = 0.18x6 + 0.82x(-6)
= $ -3.84
If a person plays this game very large number of times over the years, we expect him/her to come ut financially behind
(The expected value of the event is negative, which indicates a net loss and hence, the person will lose his money)
