Question

I understand this concept a little I just dont know how to do it with 3 different sections

Answer 1

31) -$1.25

32) $0.50

Explanation:

Problem 31

`E(X)=(1)/(4)(-5)+(1)/(4)(-20)+(1)/(2)(10)=-(5)/(4)-5+5=-(5)/(4)=-1.25`

Hence, this person would expect to gain -$1.25 (or lose $1.25) if they play this game.

Problem 32

`E(X)=(1)/(4)(2)+(1)/(4)(20)+(1)/(2)(-10)=(1)/(2)+5-5=(1)/(2)=0.50`

Hence, this person would expect to gain $0.50 if they play this game.

Answer 2

31. -$1.25

32. $0.50

Explanation:

The expected value is the sum of the product of each probability and its corresponding winnings or loss.

31.

p(win $10) = 1/2

amount of winnings = $10

p(loose $5) = 1/4

amount of loss = $5

p(loose $20) = 1/4

amount of loss = $20

expected value = (1/2)($10) + (1/4)(-$5) + (1/4)(-$20)

expected value = -$1.25

32.

p(win $2) = 1/4

amount of winnings = $2

p(win $20) = 1/4

amount of winnings = $20

p(loose $10) = 1/2

amount of loss = $10

expected value = (1/4)($2) + (1/4)($20) + (1/2)(-$10)

expected value = $0.50