Question

4 singles, 8 fives, 3 twenties, and 2 hundred dollar bills are all placed in a hat. If a player is to reach into the hat and randomly choose one bill, what is the fair price to play this game?

Answer 1

Okay, here we have this:

Considering the provided information we obtain the following:

4 singles P(1)=4/17

8 fives P(5)=8/17

3 twenties P(20)=3/17

2 hundreds P(100)=2/17

E(X)=1*4/17+5*8/17+20*3/17+100*2/17

E(X)≈17.882

Finally we obtain that the fair price to play this game is approximately $17.882.