Question

1 A Great Way to Make Money POW ID: 965 High School, Discrete Math, Discrete Math Print Problem As your sixteenth birthday approaches you are looking for ways to make money so you can buy a used car. Currently, you earn $10 a week for doing chores around the house. Your father realizes that you are trying to save up, and offers you the following deal. You can either be paid the $10, or you can pull two bills from a brown paper bag. In the bag there are two $1 bills, two $5 bills, and a $10 bill. For example, you might pull out a $1 bill followed by a $5 bill, and earn only $6. Or you might pull out the $10 bill followed by a $5 bill and earn $15. If you were given this option every week, what would be better for you to do in the long run? Is pulling two bills from the paper bag a great way to make money?

Answer 1

The problem is about probability, so we need to know actually what is the probability of win more than $10 with the bag option, and see what is better in the long run. So we first are going to find

`P(x>10)`

Where x is "the resultin money of pulling two bills from the paper bag", now