178k views
5 votes
Assume Person A is offered the following game: If they want to participate in the game, they will need to pay E5. If they participate, they can choose between Option A and Option B. Option A consists of spinning a roulette wheel with 37 different numbers (18 red, 18 black, and 1 green). If the outcome is red, the participant receives f10 and £0 otherwise. Option B is a fair coin flip that yields E5 when heads come up and £10 when tails comes up.

1 Answer

3 votes

Final answer:

The question is about the calculations of probabilities and expected values in various games, a topic within high school level Mathematics. It covers the assessment of whether repeated gameplay in biased or fair games would result in profit or loss and also touches on how social factors might influence decision-making in games.

Step-by-step explanation:

The subject of this question involves calculating probabilities and expected values for different gambling games, which falls under the field of Mathematics. When dealing with games involving coins, dice, and roulette wheels, you are essentially working with concepts of probability, which are most often explored in high school and college-level mathematics courses. The concepts mentioned in the question, such as the expected value, probability, and random variables, are fundamental to understanding the risks and outcomes associated with games of chance.

Expected Value Analysis

For example, to calculate the expected value of a biased coin game, you would multiply the outcome (money won or lost) by the probability of each outcome occurring and then sum these values. This evaluation helps determine whether, in the long-term, playing a game repeatedly would result in a net gain or loss. Similarly, a fair coin or die means that all outcomes are equally likely, which is an important assumption in calculating probabilities and expected values.

Decision Making in Games of Chance

In various games, such as the ultimatum game or betting games during festivals, the decisions can be influenced not just by mathematical fairness but also by human psychology and social factors. In these circumstances, factors such as the amount of money at stake and the distribution of power between players can significantly affect the decisions made.

User ArtemKha
by
7.3k points