Question

Which statement below correctly depicts the expected value of a fair game?

E(X) = 0
E(X) = 1
E(X) > 0
E(X) >1

Answer 1

e(x)=0 will be your answer

Answer 2

Explanation:

First of all it is important to know about the fair game. A game is said to be fair if it has equal chances of winning for both the parties.

In Statistical terms, this can be said as expected value =0

If E(X) = 1 where X is from the player, then organizer of the game would have more chances of losing.

Similarly if E(X)>0where X is from the player, then organizer of the game would have more chances of losing.

Also if E(X)>1, where X is from the player, then organizer of the game would have more chances of losing.

Hence a fair game is one where

E(X) =0