You are offered an opportunity to play a game with payoffs of $ 50, $ 5, and $ 1.?

J

Jesus Molina

New member
You have to pay $ 3 to play the game. The rules states that the probabilities for the pay-offs are as shown in the table below.

1) Complete the table, recalling that this is a probability model.

Dollar ResultsWin 50Win 5Win 1Lose Your $ 3
Probability 0.0080.050.6( __________ )

2) Calculate your expected value in this game?

3) How much do you expect to win or lose after 1000 plays?
Use a + to indicate winnings and - to indicating losses.
 
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