Question

Color Payout

Red $2
Blue $6
Green $6
Yellow $20
The game costs $5 to play. You win money based on the color the spinner lands on (the spinner can land on any color, not just green).
Payouts are as follows:
Find the expected value of the following game to the player.
Express your answer in dollars
rounded to the nearest cent (e.g.
$3.50)

Answer 1

$2.25

Explanation:

Red: $2

Blue: $6

Green: $6 + $5 (original cost of game) = $11

Yellow: $20

The total number of slots on the spinner is 4, with one slot for each color. Since the spinner can land on any color with equal probability, the probability of it landing on each color is 1/4 or 0.25.

Therefore, the expected value of the game is:

(0.25 x $2) + (0.25 x $6) + (0.25 x $11) + (0.25 x $20) - $5 = $2.25