6. In a game of chance, a contestant must choose a number from one of three categories. Correct number choices in Category A are worth $1500, but there is a penalty of $1000 for each incorrect choice. Correct number choices in Category B are worth $1000, with a $500 penalty for each incorrect choice. Correct number choices in Category C are worth $500, with no penalty for an incorrect choice. The probability of choosing correctly is 0.05 for Category A, 0.15 for Category B, and 0.25 for Category C. Which category has the highest expected value?

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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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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6. In a game of chance, a contestant must choose a number from one of three categories. Correct number choices in Category A are
worth $1500, but there is a penalty of $1000 for each incorrect choice. Correct number choices in Category B are worth $1000,
with a $500 penalty for each incorrect choice. Correct number choices in Category C are worth $500, with no penalty for an
incorrect choice. The probability of choosing correctly is 0.05 for Category A, 0.15 for Category B, and 0.25 for Category C. Which
category has the highest expected value?
Find the exnected yalue for each of the unequal spinners shown.
Inpors chown
Transcribed Image Text:6. In a game of chance, a contestant must choose a number from one of three categories. Correct number choices in Category A are worth $1500, but there is a penalty of $1000 for each incorrect choice. Correct number choices in Category B are worth $1000, with a $500 penalty for each incorrect choice. Correct number choices in Category C are worth $500, with no penalty for an incorrect choice. The probability of choosing correctly is 0.05 for Category A, 0.15 for Category B, and 0.25 for Category C. Which category has the highest expected value? Find the exnected yalue for each of the unequal spinners shown. Inpors chown
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