Skillbuilder Applet Exercise simulates playing a game where a player has a 0.2 probability of winning

$3 and a 0.8 probability of losing $1. Repeat the simulations for several sets of 100 plays using the

“Play 25 times” button.

a. What would you estimate for your expected value (average gain or loss) from the results?

b. Using the following probability distribution, calculate the mean.
x P(x)
$3 0.2 $1 0.8

c. How do your answers to parts a and b compare?
Would you consider this a fair game?
Why?

Transcribed Image Text:

ave gain 21 2 0 20 40 60 80 100 of plays You lose $1! Play 25 timest Number of plays 75 Total gainoss 15 Clear Average gainfoss