Question

Lesson 6.11

Bill is playing a game of chance with the following payout. 30% of the time you will lose 20 dollars, 20% of
the time you lose 40 dollars, 10% of the time you win 50 dollars, 40% of the time you win 5 dollars. Find the
expected value of the event and explain if Bill should play this game based on the mathematical expectation.

Answer 1

Answer:Bill should not play he Is bound to lose more money (-20)(0.3)+(-40)(0.2)+(50)(0.1)+(5)(0.4) = -7

Step-by-step explanation: 30% you of time you will lose 20 dollars

20% of time you will lose 40 dollars

10% of time you will win 50 dollars

40% of the time you will win 5 dollars