Question

In a certain game, suppose there is no cost to playing the game, and a player has a probability 0.03 of winning a prize worth 829 , and a probability of 0.28 of winning another prize worth 68 . what is the expected payment of playing the game?

Options:
a. $24.13
b. $25.15
c. $27.34
d. $28.72

Answer 1

The expected payment of playing the game is $43.91.

Step-by-step explanation:

To find the expected payment of playing the game, we need to multiply the probability of winning each prize by the value of the prize and sum them up.

Let's calculate:

Expected payment = (probability of winning prize 1 * value of prize 1) + (probability of winning prize 2 * value of prize 2)

Expected payment = (0.03 * 829) + (0.28 * 68)

Expected payment = 24.87 + 19.04

Expected payment = 43.91

Therefore, the expected payment of playing the game is $43.91.