Question

7 singles, 13 fives, 4 twenties, and 3 hundred dollar bills are all placed in a hat. If a player is to reach into the hat and randomly choose one bill, what is the fair price to play this game?

Answer 1

So,

The probability to obtain one bill of the four, is 1/4.

So, the expected value is:

`\begin{gathered} (1)/(4)(7)+(1)/(4)(13)+(1)/(4)(4)+(1)/(4)(3) \\ \\ =6.75 \end{gathered}`

Therefore, the fair price to play this game is 6.75.