Question

A casino features a game in which a weighted coin is tossed several times. The table shows the probability of each payout amount (assume that the remaining probability has a payout of 0 so that the probabilities add to 1). To the nearest dollar what is expected payout of the game? $4400 $145000 $160 Payout Amount 0.0007 0.024 Probability 0.146 Download C$v Copy to Clipboard Help Provide your answer below: SUBMIT MORE INSTRUCTION FEEDBACK Content attribution Previous

Answer 1

The expected payout of the game is $230.46.

Explanation:

The given table is

Payout Amount : $160 $4400 $145000

Probability : 0.146 0.024 0.0007

We need to find the expected payout of the game.

The formula for expected payout is

`\text{Expected payout}=\sum n_iP(x_i)`

where, n is amount and P(x) is probability of that event. The value of n is negative for loss.

Using the above formula we get

`\text{Expected payout}=160* 0.146+4400* 0.024+145000* 0.0007`

`\text{Expected payout}=23.36+105.6+101.5`

`\text{Expected payout}=230.46`

Therefore the expected payout of the game is $230.46.