Question

Suppose you were given one of thirty free tickets at the beginning of this class period. suppose at the end of this period (just dreaming) three tickets are drawn without replacement. the holder of the first ticket drawn wins $100, the second ticket $50, a nd the third ticket $30. (

a. determine your expected winnings. (
b. if your neighbor offered to buy your ticket before drawing, what would be a "fair price"?

Answer 1

expected value=(0*27+100*1+50*1+30*1)/30=$6.00

"fair" would be the expected value...but no games of chance charge a "fair" value. :)