We have a question about probability. Our approach is to obtain the mean amount that can be obtained for the possible outcomes.
Probability is derived as:
[tex]\text{Probability = }\frac{\#\text{ of desired outcome}}{\#\text{ of total outcomes}}[/tex]
The probability, P of obtaining a white can be derived knowing:
# of desired outcome = 2
# of total outcome = 16
[tex]P=\frac{2}{16}=\frac{1}{8}[/tex]
The average amount obtainable for spinning a white is:
[tex]\mu=\frac{1}{8}\times\text{ \$10=\$1.25}[/tex]
The probability, Q of obtaining any other color can be derived knowing:
# of desired outcome = 14
# of total outcome = 16
[tex]P=\frac{14}{16}=\frac{7}{8}[/tex]
The average amount obtainable for spinning any other color is:
[tex]\mu=\frac{7}{8}\times\text{ \$2=\$1.75}[/tex]
Net gain on average: Average amount gained - Average amount lost
[tex]\text{ Net gain = \$1.25 - \$1.75 = -\$0.50}[/tex]
On average, the player loses 50 cents. That makes it unfavorable for him.
OPTION C