I need help with this question number 1 and its parts (a,b,c) A box contains ten
ID: 3200228 • Letter: I
Question
I need help with this question number 1 and its parts (a,b,c) A box contains ten $1 bills, five $2 bills, three $5 bills, one $10 bill, and one $100 b A person is charged $20 to select one bill Find the expected value for this game. Is this game fair? If a person rolls doubles when he tosses two dice, he wins $5. The cost to play the game is $1. Is this game fair? A raffle sells 100 tickets at $5 a piece. There is one $500 prize, five $100 prizes, and ten $50 prizes. Find the expected value for this raffle.
Explanation / Answer
Answer:
a).
n
p
x
p*x
10
0.5
1
0.5
5
0.25
2
0.5
3
0.15
5
0.75
1
0.05
10
0.5
1
0.05
100
5
Total
20
7.25
Expected value = $7.25
Since $20 $7.25, this is not a fair game.
b).
Probability of doubles in two dice = 6/36= 1/6
Expected value = 5*(1/6) +0*(5/6) =0.833
Expected value= $0.83
Since $1 $0.83, this is not a fair game.
c).
N=100
n
p
x
p*x
1
0.01
500
5
5
0.05
100
5
10
0.1
50
5
Total
15
Expected value= $15
n
p
x
p*x
10
0.5
1
0.5
5
0.25
2
0.5
3
0.15
5
0.75
1
0.05
10
0.5
1
0.05
100
5
Total
20
7.25