posted by patti on .
julie and brandon cut lawns for their neighbors to earn money to a local charity. they thought that the customers should pay 20$. however, sevral customers offered a different pay plan and asked the students to chose. julie and brandon have to decide which of the pay plans would give them a fair deal over the long run. the customer rolls a pair of number cubes. if the product is 24 julie and brandon get 40$. otherwise, they get 10$.
The only way to obtain a product of 24 on 2 dice is to get a 6,4 or 4,6
prob of product of 24 = 2/36 = 1/18
expected value of that = (1/18)(40) = $2.22
expecte value of not a product of 24 = (17/18)(10) = $9.44
where does "over the long run" come in?
What happened to the $20 charge?