Question

Week 5 Discussion

Choose a gambling game. Describe it, and find the expected value of playing the game. Is it fair? Why or why not?

Respond whether you agree or disagree with your classmate’s post, and explain why. Remember to always be polite, and use full sentences and proper grammar.

Answer 1

You win $10 in a spinner game if the spinner lands on the green. Otherwise, you lose $1 for every play. (1-36 marked on the spinner)

The distribution table is:

X	P(X)
10	0.027778
-1	0.972222
Sum	1

The expected value of the game is -$0.69444.

X	P(X)	X*P(X)
10	0.027778	0.277778
-1	0.972222	-0.97222
Sum	1	-0.69444
	Expected value	-0.69444

The game is fair since all of the 36 values are equally likely to happen in the game and the expected value of winning the game is -$0.69444.