Answer: Expected value of playing the game is $0.
Step-by-step explanation:
Since we have given that
Total number of colored chips = 20
Number of blue chips = 2
Number of purple chips = 4
Number of green chips = 7
Number of red chips = 7
Amount of prize he gets for blue chip = $10
Amount of prize he gets for a purple chip = $5
No amount is given for red or green
Amount he had to pay = $2
So, Expected value of playing the game is given by
Hence, Expected value of playing the game is $0.