Question

There is a game where the outcome is a random integer from 1 to 10, costing $20 to enter. If the outcome is odd, you win $33. If the outcome is even, you win nothing. If you play the game, what is the expected profit?

Answer 1

$-1.40

Step-by-step explanation

The expected profit is:

`E(X)=P(\text{odd)}\cdot(33-20)+P(even)\cdot(0-20)`

In both cases you pay $20, so you have to subtract that from what you win.

Between 1 and 10 there are 5 odd numbers and 5 even numbers:

`\begin{gathered} P(\text{odd)}=(1)/(5) \\ P(\text{even)}=(1)/(5) \end{gathered}`

The expected profi