Question

A game is said to be fair if the expected value (after considering the cost) is 0.

Game
You pay 5 Euros to spin the arrow on a wheel. Each colored space has a different amount to win some money. Whichever space the arrow lands on, this is the amount of money you get back (after you paid the 5 Euros to play)

What is the expected value of this game?

Answer 1

Multiplying each outcome by it's respective probability, and adding them, it is found that the expected value of the game is -€0.25.

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• A probability is given by the number of desired outcomes divided by the number of total outcomes.

The probabilities of each outcome are:

• 1/2 = 0.5 probability of earning 2.
• 1/4 = 0.25 probability of earning 4.
• 1/8 = 0.125 probability of earning 14.
• 1/8 = 0.125 probability of earning 8.

The expected earnings are:

$E = 0.5(2) + 0.25(4) + 0.125(14) + 0.125(8) = 4.75$

Subtracting the cost to play:

$4.75 - 5 = -0.25$

The expected value of this game is of -€0.25.

A similar problem is given at https://brainly.com/question/16791320