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?

Answer 1

My guess would be that the expected value of the game is either $40 or $38 because there is a 10 dollar prize for a blue chip and there are only 2 in the bottle and purple chips are worth 5 dollars and there are 4 of them. So, 10*2=20 and 5*4=20, so 20+20=40. also, you payed $2 to play the game so you take that away from the $40 the game is worth. i hope this helps<span />

Answer 2

You pay 2 dollars for the game after all the math