A person must pay $ 10 to play a certain game at the casino. Each player has a probability of 0.12 of winning $ 13, for a net gain of $ 3 (the net gain is the amount won 13 minus the cost of playing 10). Each player has a probability of 0.88 of losing the game, for a net loss of $ 10 (the net loss is simply the cost of playing since nothing else is lost). What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places. Expected Value = $ If a person plays this game a very large number of times over the years, do
A person must pay $ 10 to play a certain game at the casino. Each player has a probability of 0.12 of winning $ 13, for a net gain of $ 3 (the net gain is the amount won 13 minus the cost of playing 10). Each player has a probability of 0.88 of losing the game, for a net loss of $ 10 (the net loss is simply the cost of playing since nothing else is lost). What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places. Expected Value = $ If a person plays this game a very large number of times over the years, do
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
A person must pay
$
10 to play a certain game at the casino. Each player has a probability of 0.12 of winning
$
13, for a net gain of
$
3 (the net gain is the amount won 13 minus the cost of playing 10).
Each player has a probability of 0.88 of losing the game, for a net loss of
$
10 (the net loss is simply the cost of playing since nothing else is lost).
What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places.
Expected Value = $
If a person plays this game a very large number of times over the years, do we expect him/her to come out financially ahead or behind?
Expert Solution
Step 1: Given information
The probability of winning is 0.12.
The net gain is $3.
The probability of losing is 0.88.
The net loss is $10.
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