A player pays a $1 to play a game. With probability 0.001 the player wins $900, with probability 0.005 the players wins $10. What is the players expected win per game?
-.044
To find the player's expected win per game, we need to multiply the value of each outcome by its corresponding probability, and then sum up these products.
Let's calculate the expected win:
1. Probability of winning $900: 0.001
Value of winning: $900
Expected win from this outcome: (0.001 * $900) = $0.90
2. Probability of winning $10: 0.005
Value of winning: $10
Expected win from this outcome: (0.005 * $10) = $0.05
Now, let's calculate the total expected win by summing up the expected wins from each outcome:
Total expected win = Expected win from winning $900 + Expected win from winning $10
= $0.90 + $0.05
= $0.95
Therefore, the player's expected win per game is $0.95.