Question

Maria has a bag with balls numbered 1 through 8 . She is playing a game of chance. This game is this: Maria chooses one ball from the bag at random. She wins if the number is selected, if the number is selected, if the number is selected, if the number is selected, and if the number is selected. She loses if , , or is selected.

Answer 1

The mathematical expectation of this game is (1/8)(1 + 2 + 3 + 4 +5) - (3/8)(3.40) = 0.60, i.e. in the long run she should expect to win money.