1. On a roulette wheel, there are 40 slots, 10 of which are colored red. If you bet $7 on red and win, you get $14 back. If not, you lose your $7. 2. The expected value for this game is +$7(1/4) + -$7 (3/4) = -$3.50 3. This game is not fair because the expected value is negative, but at least there is a 25% chance for the person to win $14.

1. On a roulette wheel, there are 40 slots, 10 of which are colored red. If you bet $7 on red and win, you get $14 back. If not, you lose your $7. 2. The expected value for this game is +$7(1/4) + -$7 (3/4) = -$3.50 3. This game is not fair because the expected value is negative, but at least there is a 25% chance for the person to win $14.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

4. The student council is hosting a drawing to raise money for scholarships. They are selling tickets for $5 each and will sell 700 tickets. There is one $2,000 grand prize, three $400 second prizes, and twelve $40 third prizes. You just bought a ticket. Find the expected value for your profit. Round to the nearest cent.
In a bag there are 8 red balls, and 2 pink balls. You pay 3 dollars to draw 2 balls. If you draw 2 red balls you lose, if you draw a red and pink you win 8 dollars, and if you draw 2 pink you get 90 dollars. Find the expected value of this game and round you answer to the nearest cent.
A bag contains 2 red balls worth £3, 2 blue balls worth £2 and 5 green balls worth £0. You pick 1 ball out of the bag (without replacement). What the expected value of earnings from playing this game once (3 decimal places).
Five hundred raffle tickets are sold for $1 each, for a first prize of $200 and two second prizes of $50 each. What is the expected value if you purchase one ticket?
the sales manager knows that 18% of his clients do not pay their debts in full. He supposes that he selects a sample of 59+ clients. What is the probability that 15% or more will not be fulfilled in their obligations? Type your answer here:
How would you explain the EXPECTED VALUE in gambling, buying an insurance or in our daily life? Please bring an example. Thank you!
Suppose you buy 1 ticket for $1 out of a lottery of 400 tickets with only 1 being the winning ticket. The prize for the one winning ticket is $100. What is your expected value in dollar? Round your value to 0.01 dollar. For example, -0.50 means losing half a dollar.
1000 raffle tickets were sold for $4 each. 2 prizes of $500 each, and 11 prizes of $100 each is to be awarded to winners. If Olga purchases one ticket, what is the expected value of her winnings? Round your answer to two decimal places (to the nearest cent).
Carlie is betting on a game in which each bet has an expected value of -$0.56. This implies A. Carlie will win $0.56 every time she plays the game. B. Carlie will lose $0.56 every time she plays the game. C. if Carlie plays the game many times, on an average Carlie should expect to lose about $0.56 each game.Is it correct answer C?
A family in Nepal is planning to have N=8 children. And you know that at least one child will inherit the eye disease, myopia. This inforrmation is given. The probability of this genetic transfer (inheritance) is p=43%. Find the expected value for the number of children who will inherit myopia?
A family in Nepal is planning to have N=8 children. And you know that at least one child will inherit the eye disease, myopia. This inforrmation is given. The probability of this genetic transfer (inheritance) is p=13%. Find the expected value for the number of children who will inherit myopia?