You get to throw a bean bag at a cutout of Mrs. Reed’s face with holes for the eyes, nose and mouth. You have a 20% chance of throwing it in the eyes or nose. If you do, then you win $5. You have 30% chance of throwing it in the mouth. If you do, then you win $4. You have 50% chance of missing. If you miss, you lose $6. Find the expectation for this game.
You get to throw a bean bag at a cutout of Mrs. Reed’s face with holes for the eyes, nose and mouth. You have a 20% chance of throwing it in the eyes or nose. If you do, then you win $5. You have 30% chance of throwing it in the mouth. If you do, then you win $4. You have 50% chance of missing. If you miss, you lose $6. Find the expectation for this game.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You get to throw a bean bag at a cutout of Mrs. Reed’s face with holes for the eyes, nose and mouth. You have a 20% chance of throwing it in the eyes or nose. If you do, then you win $5. You have 30% chance of throwing it in the mouth. If you do, then you win $4. You have 50% chance of missing. If you miss, you lose $6. Find the expectation for this game.
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