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34 votes
34 votes
At a carnival game, you can either pay $1.00to play game A and have a 10% chance ofwinning $15.00 or pay $3.00 to play game Band have a 15% chance of winning $20.00.What is the expected value of playing eachgame?

User Yogesh Kumar
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1 Answer

13 votes
13 votes

The expected value is given by:


E(x)=\sum ^n_(i=1)x_ip(x_i)

For game A:


15\cdot0.1=1.5

For game B:


20\cdot0.15=3

User Superpolock
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