Answer:
1. It is not a fair game.
2. The game is not fair because the probability of winning and the probability of losing are not equal. In a fair game, the probability of winning is equal to the probability of losing. In this game, the probability of losing is 0.81 or 81%, while the probability of winning is 19% (100 - 81).
Explanation:
Cost of playing the game one time = $3
Total number of bills in the box = 124 (100+20+3+1)
Chance of losing is represented by 100 of $1 bills = 100/124 = 0.81 or 81%
Chances of losing are represented by 20 of $5 bills, 3 of $20 bills, and 1 $100 bill = 0.19 or 19% (20/124 + 3/124 + 1/124).