Question

In a box there a total of four prizes: Two of them are worth $3, a single prize worth $23, and a single prize worth $190. A player will reach into the box and draw one of the prizes at random. What is the fair price for this game?

Answer 1

176 is the correct formula

Answer 2

The fair price of the game is $54.75

The player is expected to win $54.75

Step-by-step explanation:

Here, we want to get the fair prize of the game

From the question, there are 4 prizes

When reaching into the box, we can only pick 1

Assuming that each of the prizes have the same probability oof being picked, the probability of picking any of the prize is 1/4

Now, to get the fair price of the game (it is obviously positive as we do not know if the player has anything to lose)

We have to multiply the probability by each of the price tag, then sum

Mathematically,we have this as:

`\begin{gathered} (2*(1)/(4)*\text{ \$3) + (}(1)/(4)*\text{ \$23) + (}(1)/(4)*\text{ \$190)} \\ \\ =\text{ \$1.5 + \$5.75 + \$47. 5 = \$54.75} \end{gathered}`