Math - Expected Value

posted by .

If you select a chip at random from a jar with 7 red, 2 green and 1 blue chip. If the chip you pick is red, you win $10,000, if it is green, you wil $20,000 and if it is blue, you lost $100,000. What is your expected value of this game?

  • Math - Expected Value -

    prob(red) = 7/10
    expected return for red = (7/10)(10000) = 7000
    prob(green) = 2/10
    expected return for green = (2/10)(20000) = 4000
    prob(blue_ = 1/10
    expected return for blue = (1/10)(-100000) = - 10000
    expected value = 7000+4000-10000 = 1000

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    a bin contains seven red chips, nine green chips, three yellow chips, and six blue chips. Whats the probability od drawing a red chip, replacing it, then drawing a blue chip
  2. math

    a bin contains seven red chips, nine green chips, three yellow chips, and six blue chips. Whats the probability od drawing a red chip, replacing it, then drawing a blue chip
  3. algebra

    A bin contains 8 blue chips, 5 red chips, 6 green chips, and 2 yellow chips. Question: drawing a red chip, replacing it, then drawing a green chip.
  4. Math

    An urn contains 4 green, 6 blue and 10 yellow chips. You pay $5 to draw a chip from the urn. Here are the rules of the game: if you draw a green chip, the dealer returns you your bet and gives you an additional $5. if you draw a blue …
  5. College Stats

    An urn contains 4 green, 6 blue and 10 yellow chips. You pay $5 to draw a chip from the urn. Here are the rules of the game: if you draw a green chip, the dealer returns you your bet and gives you an additional $5. if you draw a blue …
  6. math

    Two chips are selected from a box containing 6 blue chips, 4 red chips, and 3 green chips. The first chip selected is not replaced before the second is drawn. Find P(red, then green).
  7. Statistics

    Suppose a bag contains 7 red chips, 8 black chips, and 3 green chips. You draw two chips (without replacement) from the bag. Find the probability that you drew a red chip first and then a black chip second.
  8. alg I

    Yellow, green, and red chips are placed in a bag. The odds against pulling a green chip are 2/5. What is the probability of pulling a green chip?
  9. algebra

    a bag contains 4 red chips, 2 blue chips and 5 green chips. A chip is randomly removed from the bag, and then without replacing the first chip, a second chip is removed. What is the probability that both of the chips selected from …
  10. statistics

    A die has 2 red faces, 2 blue faces, and 2 green faces. It is rolled 240 times. Let R be the number of times red faces appear, and B the number of times blue faces appear. The random variable R is the sum of 240 draws at random with …

More Similar Questions