A person must pay $5 to play a certain game at the casino. Each player has...
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A person must pay $5 to play a certain game at the casino. Each player has a probability of 0.19 of winning $ 13, for a net gain of $8 (the net gain is the amount won 13 minus the cost of playing 5). Each player has a probability of 0.81 of losing the game, for a net loss of $5 (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 = $ A person must pay $5 to play a certain game at the casino. Each player has a probability of 0.19 of winning $ 13, for a net gain of $8 (the net gain is the amount won 13 minus the cost of playing 5). Each player has a probability of 0.81 of losing the game, for a net loss of $5 (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 = $
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To calculate the expected value we need to multiply each possibl... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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