A few days ago
MRBLUE876

statistics help?

Suppose you want to play a carnival game that costs 5 dollars each time you play. If you win, you get $100. The probability of winning is 1/25. What is the expected value of the amount that you, the player, stand to gain?

Top 2 Answers
A few days ago
wild_turkey_willie

Favorite Answer

If you play the game 25 times, it will cost you $5 x 25 = $125. You can expect to win one of the 25 games, and so you will get $100 back. Thus you will lose $25 every 25 games that you play. The expected value of one game is -$25/25 = -$1 per game.
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A few days ago
Anonymous
I believe that the player would gain nothing, because statistically you could spend $125 just to win once.
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