Question

For many years organize crime rent a number game that is now run illegally by minis states government the player select a three digit number from 0 to 999 there are 1000 such members a bet of two dollars is placed on a number say number 115 if the number is selected the player wins $700 if any other number is selected the player wins nothing find the expected value for this game and describe what it means

Answer 1

Using a discrete distribution, the expected value for this game is of -$1.298, which means that each time he plays, he is expected to lose $1.298.

What is the mean of a discrete distribution?

The expected value of a discrete distribution is given by the sum of each outcome multiplied by it's respective probability.

Considering the situation described in this problem, the distribution for the earnings is given as follows:

• P(X = 700) = 1/1000.

• P(X = -2) = 999/1000.

Hence the expected value is given as follows:

$E(X) = 700\frac{1}{1000} - 2\frac{999}{1000} = \frac{700 - 2(999)}{1000} = -1.298$

The expected value for this game is of -$1.298, which means that each time he plays, he is expected to lose $1.298.

More can be learned about the expected value of a discrete distribution at https://brainly.com/question/3316979

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