Question

For a cost of $15, you can have a carnival worker draw a random number from 1 to 10. If the number is odd, you win $21. If the number is even, you win nothing. If you play the game, what is the expected profit?

Answer 1

odd number = 21

Odd numbers = 1, 3, 5, 7 , 9

Even numbers = 2, 4 , 6, 8, 10

Profit = 5/10

= 1/2(21 - 15)

= 1/2(6)

= $3

The expected profit is $3.