Question

A gambling game involves a spinner with the numbers 1 through 25. To play, the player guesses which numbers the spinner will land on. The table shows the probability of each payout amount (assume that the remaining probability has a payout of 0 so that the probabilities add to 1). To the nearest dollar, what is the expected payout of the game? Payout Amount $150 $5,000 $165,000 Probability 0.146 0.025 0.0006

Answer 1

Explanation:

Expected value is the sum of each amount multiplied by its probability.

E = ∑ X P(X)

E = 150 (0.146) + 5000 (0.025) + 165,000 (0.0006)

E = 245.9

Rounded to the nearest dollar, the expected payout is $246.