Question

Consider the following game. There is a bottle with 20 colored chips inside. There are 2 blue chips, 4 purple chips, 7 green chips, and 7 red chips. You pay $2 and pick one out at random. If you pick a blue chip, you get a prize of $10. If you pick a purple chip, you get a prize of $5. You get nothing for red or green chips. What is the expected value of playing the game? $2 $0 –$2 –$0.50

Answer 1

Well the expected value is 0 dollars for the green and also the red chips. 10 dollars is expected if you pick blue chips and 5 dollars for purple chips. I hope that this helps