Question

Consider the following game: You reach into a jar of money, and select a single bill at random to keep. There are 9 five-dollar bills, 5 ten-dollar bills, and 3 twenty-dollar bills in the jar. What should the cost of this game be in order for the game to be fair

Answer 1

`E(x)=\$9.118`

Explanation:

From the question we are told that:

Available bills

`\$5=N0 9\\\\\$10=N0 5`

`\$20=N0 3`

Therefore

Total Bills

`n=5+9+3`

`n=17`

Probability of selecting each bill

`For\$5`

`P(\$5)=(9)/(17)`

`For\$10`

`P(\$10)=(5)/(17)`

`For\$20`

`P(\$20)=(3)/(17)`

Generally the equation for Expected winning is mathematically given by

`E(x)=\sum(X)*P(X)`

`E(x)=5*(9)/(17)+10*(5)/(17)+20*(3)/(17)`

`E(x)=\$9.118`