Question

1 point) Consider the following game of chance based on the spinner below: Each spin costs $2. If the spinner lands on A the player wins a quarter, if the spinner stops on D the player wins $9 otherwise the player wins nothing. Calculate the players expected winnings. Express your answer to at least three decimal places in dollar form. .

Answer 1

Answer:

the expected amount that the player will win is $0.313

Step-by-step explanation:

I am assuming that there are 4 possible outcomes: A, B, C and D, each one with an equal probability of 1/4. The expected value can be obtained by summing the product of the probability of each outcome with the value that you win from it, all that minus 2, the cost of the game. Thus, the expected value (in dollars) is

1/4 P(A) + 0 P(B) +  0 P(C) + 9 * P(D) - 2 = 1/4*1/4 + 9 * 1/4 - 2 = 1/16 + 9/4 - 2 = 0.3125

rounding up, the expected value that the player will win is $0.313