With the following bet of $5 in a common gambling game thereis a probability of:
ID: 2914040 • Letter: W
Question
With the following bet of $5 in a common gambling game thereis a probability of: 321/687 - win $5 366/687 - lose $5 a) what is the expected value (nearest tenth of a cent)? b) what is the amount lost in the long run for each dollar bet(use unrounded expected value in each calculation)? With the following bet of $5 in a common gambling game thereis a probability of: 321/687 - win $5 366/687 - lose $5 a) what is the expected value (nearest tenth of a cent)? b) what is the amount lost in the long run for each dollar bet(use unrounded expected value in each calculation)?Explanation / Answer
(a) Expected value = 321/687 x 5 + 366/687 x (-5) = -0.328 (b) The amount lost in the long run for each dollar bet is 0.328 dollar(The expected value) Hope this helps!