Question

As your sixteenth birthday approaches you are looking for ways to make money so you can buy a used car. Currently, you earn $10 a week for doing chores around the house. Your father realizes that you are trying to save up, and offers you the following deal. You can either be paid the $10, or you can pull two bills from a brown paper bag. In the bag there are two $1 bills, two $5 bills, and a $10 bill. For example, you might pull out a $1 bill followed by a $5 bill, and earn only $6. Or you might pull out the $10 bill followed by a $5 bill and earn $15. If you were given this option every week, what would be better for you to do in the long run? Is pulling two bills from the paper bag a great way to make money? Justify your answer​

Answer 1

A. Personally if i was given these 2 options i would take the choice of drawing 2 bills from the bag per week.

B. Yes, i do not think pulling 2 bills from the bag is a good way to make money.

A. You could either get 10$ per week or you could get, 2$ 6$ 6$ 10$ 11$ 11$ 15$ 15$ now this depends largely on luck but logically 5 out of 9 times you will get 10 dollars or more so there is a higher chance you get more money from drawing money.

B. It is a good way to make money because 2/9ths of the time you will get 15$ and for every time you get 6$ you will get an equal amount of 15$ and you will get 21$ in the 2 weeks so it adds up, if you have bad luck or do this for a short amount of time then you could be losing out but if you have an average amount of luck then it will be worth the chance.