Question

In a Superbowl pool, the odds of you winning $100 is 2%, winning $75 is 8%, winning $50 is 10%, winning $35 is 15%, winning $20 is 25%, winning $0 is 40%. Find the expected amount that you would get if you played in the pool. Hint, what is your variable x and what is the P(X)?

Answer 1

The expected payout from participating in the Superbowl pool, based on the given probabilities of winning various amounts, is calculated to be $23.25.

Step-by-step explanation:

The student is interested in calculating the expected value of outcomes in a Superbowl pool, where each outcome has a different probability of occurring. To calculate the expected amount, we multiply each payout by its respective probability of occurrence and add them together:

• Expected value for $100 win = $100 * 0.02 = $2
• Expected value for $75 win = $75 * 0.08 = $6
• Expected value for $50 win = $50 * 0.10 = $5
• Expected value for $35 win = $35 * 0.15 = $5.25
• Expected value for $20 win = $20 * 0.25 = $5
• Expected value for $0 win = $0 * 0.40 = $0

Add these values together to calculate the total expected value:

$2 + $6 + $5 + $5.25 + $5 + $0 = $23.25

The expected payout from participating in the Superbowl pool is $23.25.