Question

involving a carnival fishpond. Assume that the pond contains 100 fish: 78 purple, 21 blue, and 1 silver. A contestant pays $0.65 to randomly catch one fish and receives $0.40 if the fish is purple, $0.80 if the fish is blue, and $13.00 if the fish is silver. How much (on average) does the carnival gain on each play?

Answer 1

Answer:

On average the carnival gain on each play

= 0.04 dollars

Step-by-step explanation:

Given that a pond contains 100 fish: 78 purple, 21 blue, and 1 silver.

Fish            Purple     Blue          Silver    total

   

Frequency  78               21                 1    100

Prob          0.78      0.21             0.01      1

Revenue           0.4                0.8            13  

game fee 0.65        0.65            0.65  

Net revenue -0.25      0.15            12.35    

   

Net Rev*Prob -0.195      0.0315   0.1235   -0.04

Thus we get per player expected net revenue is -0.04

This would be gain for Carnival

Hence On average the carnival gain on each play

= 0.04 dollars