Question

A casino features a game in which a weighted coin is tossed several times. The table shows the probability of each payout amount (assume that the remaining probability has a payout of 0 so that the probabilities add to 1). To the nearest dollar what is expected payout of the game? $4400 $145000 $160 Payout Amount 0.0007 0.024 Probability 0.146 Download C$v Copy to Clipboard Help Provide your answer below: SUBMIT MORE INSTRUCTION FEEDBACK Content attribution Previous

Answer 1

Answer:

The expected payout of the game is $230.46.

Step-by-step explanation:

The given table is

Payout Amount :    $160       $4400      $145000      

Probability         :    0.146       0.024          0.0007

We need to find the expected payout of the game.

The formula for expected payout is

$\text{Expected payout}=\sum n_iP(x_i)$

where, n is amount and P(x) is probability of that event. The value of n is negative for loss.

Using the above formula we get

$\text{Expected payout}=160\times 0.146+4400\times 0.024+145000\times 0.0007$

$\text{Expected payout}=23.36+105.6+101.5$

$\text{Expected payout}=230.46$

Therefore the expected payout of the game is $230.46.