Posted by Samantha on .
A box contains 4 coins: a penny, a nickel, a dime, and a quarter. It costs a dime to reach in and take a coin. What is the expected value of this game?
(1/4)(1 + 5 + 10 + 25) cents
That is 10.25 cents.
If you bet a dime, it is still a good bet. You would have a 2.5% edge over the "house"