Question

let's say Rubik's cube club has developed a carnival game at Festivus. They are charging $2 per ticket to play. The expected pay out for each play is $2.50. Should the club modify the game? explain the reasoning

Answer 1

They are charging $2 per ticket to play, however the expected pay out for each play is $2.50. This doesn't make any sense, if they expected to earn $2.50 they should charge at least $2.50 per ticket to play.

C(x) = 2.50x

Where:

x = Number of tickets

C(x) = Total cost