The following is a miniature version of the Wheel of Fortune. When Dave spins the wheel, he is awarded the amount on the wheel indicated by the pointer. If the wheel points to Bankrupt, he loses the total amount he has accumulated and also loses his turn. Assume that the wheel stops on a position at random and that each position is equally likely to occur.

(a) Determine Dave’s expectation when he spins the wheel at the start of the game (he has no money to lose if he lands on Bankrupt).

(b) If Dave presently has a balance of $1800, determine his expectation when he spins the wheel.

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$200 $400 Lose a turn 00E$ 000I$ Bankrupt $100 $500 $700 009$ 006$ $800