I have submitted this question two times and still am not getting the correct an
ID: 2923612 • Letter: I
Question
I have submitted this question two times and still am not getting the correct answer and not seeing where I am getting it wrong.
Professor Notes: Since each spin costs $2, there are three possible outcomes: you can gain $5, you can lose $1.75 or you can lose $2. The respective probabilities are 2/7, 3/14 and 2/7 + 3/14 = 9/14. Multiply each outcome by its probability and add to get the mean to find the expected winnings.
Consider the following game of chance based on the spinner below:
Each spin costs $2. If the spinner lands on D the player wins $7, if the spinner stops on A the player wins a quarter otherwise the player wins nothing. Calculate the players expected winnings. Express your answer to at least three decimal places in dollar form. .
Answer: $
Explanation / Answer
The answer is -$0.089.
OK, the answer is nothing but an expected value of the how much you can win net the cost of playing this game ie.
E(X) = 5*2/7 + (-1.75)*3/14 + (-2)*(2/7) +(5)*2/7 = $1.9107
Now, we subtract the cost of each spin i.e. $2
So, net E(X) = $1.9107 - $2 = - $0.089