Repeat Example 3 with the player winning $5 instead of $4 if the chosen number turns up.
Question:
Repeat Example 3 with the player winning $5 instead of $4 if the chosen number turns up. The loss is still $1 if any other number turns up. Is this a fair game?
Data from Example 3
A spinner device is numbered from 0 to 5, and each of the 6 numbers is as likely to come up as any other. A player who bets $1 on any given number wins $4 (and gets the $1 bet back) if the pointer comes to rest on the chosen number; otherwise, the $1 bet is lost. What is the expected value of the game (long-run average gain or loss per game)?
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Related Book For
Finite Mathematics For Business Economics Life Sciences And Social Sciences
ISBN: 9780134862620
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
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