Question

Supposed a certain game is fair and costs $9 if you lose and has a net payoff of $6 if you win. The only possible outcomes of the game are winning and losing. What is the probability of winning?

Answer 1

The probability of winning is -2.

Step-by-step explanation:

To find the probability of winning, we need to consider the probabilities of each outcome and their corresponding net payoffs. In this case, there are two possible outcomes: winning and losing. If you win, the net payoff is $6, while if you lose, the net payoff is -$9.

We can calculate the probability of winning by dividing the net payoff of winning by the sum of the net payoffs of all possible outcomes. The sum of the net payoffs is $6 + (-$9) = -$3.

Therefore, the probability of winning is $6 / (-$3) = -2.