3. You are playing on the game show "Deal or No Deal" and there are only 6 cases left (including yours). The possibledollar amounts left for those cases are $0.01, $75, $5000, $10,000, $400,000 and $1,000,000. The banker offers you adeal of $210000 so you can either accept the deal and take the cash, or keep playing. Find the expected value for yourcase at this point in the game. Should you pick a case or take the banker's offer?

There are 6 cases left. The possible dollar amounts left are $0.01, $75, $5000, $10,000, $400,000…

Answered: 3. You are playing on the game show…

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...

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Similar questions

two fair coins. He wins $5 if 2 heads occur, $2 if Problem#6: A player tosses 1head occurs and $1 if no heads occur. (i) Find his expected winnings. (ii) How much should he pay to play the game if it is to be fair?
Brandon is setting up his own carnival game. His plan is to make sure that the game has a negative expected value, because that will be the most beneficial for his own profit. He decides to set the following rules. You pay $10 to play, and then you get to throw one dart at a dartboard. The dartboard is broken up into 8 equally sized sections. 3 of the sections are red. 4 of the sections are blue. 1 of the sections is green. If your dart hits the green section, Brandon hands you $30. If your dart hits any of the red sections, he gives you $15. If your dart hits any of the blue sections, you win nothing. What is the expected value for one turn? (Just write the number rounded to the nearest thousandths without the dollar sign. ie. 0.123 or -0.123)
One option in a roulette game is to bet $28 on red. (There are 18 red compartments, 18 black compartments, and two compartments that are neither red nor black.) If the ball lands on red, you get to keep the $28 you paid to play the game and you are awarded $28. If the ball lands elsewhere, you are awarded nothing and the $28 that you bet is collected. Find the expected payback for this roulette game if you bet $28 on red.
You have inherited a lottery ticket that may be a $5,000 winner. You have a 35% chance of winning the $5,000 and a 65% chance of winning $0. You have an opportunity to sell the lottery ticket for $1,500. What is your expected return and what should you do if are risk neutral?
An adventurous aardvark is a card shark and gambler. He offered to let you play in a game with him. To play you must pay him $2. If you pick a spade you win $9 what is the expected value for you if you play this game with the aardvark?
You pay $3.50 to play the following game:Each of two fair dice are numbered with 3 on one side, a 2 on two sides, and a 1 on three sides.The dice are rolled once and you are returned the dollar amount corresponding to the sum on thefaces. What is the expected earning from the game?
Your friend convinces you to play a game where you roll a standard die one time. It costs $5 to play the game. If you roll a 3 or a 4 you win $9. Any other roll wins nothing. 4. Find the expected value of this game.
If you throw exactly one head in three tosses of a coin you win $37. If not, you pay me $27 Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
There are 12 slips of paper in a hat. I will let you reach in and grab one, without looking. An amount of money is written on each piece of paper. One has $100, two have $50, three have $20, and the rest have $–20. If your paper has a positive amount, I will give you that amount in cash. If you get $–20, you must pay me $20. Calculate the expected value of playing the game.
Round 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?
An exclusive raffle is being held where only 7 tickets are available. The raffle is free to enter. If you choose to play, you could win $7 or lose $3. Three tickets are winning tickets and you will win $7 if your ticket is drawn. Four tickets are losing tickets where you must pay $3 if your ticket is drawn. What is the expected return if you enter the raffle?

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