what is the expected value of a fair game?
It depends on the game: the rewards and the probability of particular outcomes.
If the lottery has a 10 million dollar prize, and I have a one in five chance of winning it (I wish), the expected value would be
1/5 * 10 Million
To calculate the expected value of a fair game, you need to multiply the probability of each possible outcome by their corresponding value and then sum up the results.
In this case, the probability of winning the 10 million dollar prize is given as 1/5. So, the expected value would be:
(1/5) * 10,000,000 = 2,000,000
Therefore, the expected value of the fair game with a 10 million dollar prize and a one in five chance of winning it is 2,000,000 dollars.