Question

There are 3 red balls, 5 green balls, and 1 yellow ball in a hat. If you draw the yellow ball, you gain $10. If you draw any of the red balls, you gain $4. If you draw a green ball, you lose $3. If you were to play this game 25 times, replacing the drawn ball each time, how much money can you expect to gain or lose?

Answer 1

19.44

Explanation:

We have the following information:

3 red balls, 5 green balls, and 1 yellow ball

In total there are 3 + 5 + 1 = 9 balls.

We calculate the probability of each:

Network: 3/9

Green: 5/9

Yellow: 1/9

Each one corresponds a price in profit or losses:

Network: 4

Green: -3

Yellow: 10

So in total it would be the sum of the multiplication of the probability and the price and then multiply everything by 25:

(4 * 3/9 + -3 * 5/9 + 10 * 1/9) * 25 = (0.777) * 25

= 19.44