Amy sets up a game in which she puts four $10bills and one $20 bill in one box. Blindly grabs one of the bills and keeps it. To break even on average, how much must she charge the player to play?
is it just 60-2o=40....so she would need to charge the player $20 to break even?
To determine how much Amy must charge the player to break even, we need to calculate the average value of each bill.
Let's break it down step by step:
1. Calculate the total value of the bills:
- Four $10 bills: 4 x $10 = $40
- One $20 bill: 1 x $20 = $20
2. Calculate the probability of picking each bill:
- Since there are five bills in total, the probability of picking a specific bill is 1/5 for each bill.
3. Calculate the average value of the bills:
- Multiply the value of each bill by its probability and sum them up:
($10 x 4/5) + ($20 x 1/5) = $40/5 + $20/5 = $8 + $4 = $12
So, on average, the value of each bill is $12. Therefore, Amy needs to charge the player at least $12 to break even.
In your calculation, you subtracted $20 from $60, which is incorrect because there wasn't $60 to begin with. The total value of the bills is $40.