Question

A jar has 10 red marbles, 6 purple marbles, and 4 turquoise marbles. If you pull a red marble, you win nothing. If you pull a purple marble, you win $2; and if you pull a turquoise marble, you win $5. It costs $3 to play. What is the expected value?

Answer 1

Answer:

The expected value = -1.4 Dollars

Step-by-step explanation:

The number of red marbles = 10

The number of red purple = 6

The number of red turquoise = 4

The total number of marbles in the jar = 10 + 6 + 4 = 20 marbles

The prize won for pulling a red marble = 0

The prize won for pulling a purple marble = $2

The prize won for pulling a turquoise marble = $5

The probability of pulling a red marble = 10/20 = 1/2

The probability of pulling a purple marble = 6/20 = 3/10

The probability of pulling a turquoise marble = 4/20 = 1/5

Expected value, EV, probability is the foreseen or bankable future value value for a current investment. The expected value is found by finding the product of each outcome and the probability of occurrence of the outcome and then adding the values of the products together

To find the expected value, EV sum the prizes won multiplied by the probability of winning that prize and then subtract the cost of playing the game.

Therefore;

EV = 1/2×0 + 3/10×2 + 1/5 × 5 -3 = -1.4

The expected value = $(-1.4).