Question

At a carnival game, you can either pay $1.00to play game A and have a 10% chance ofwinning $15.00 or pay $3.00 to play game Band have a 15% chance of winning $20.00.What is the expected value of playing eachgame?

Answer 1

The expected value is given by:

`E(x)=\sum ^n_(i=1)x_ip(x_i)`

For game A:

`15\cdot0.1=1.5`

For game B:

`20\cdot0.15=3`