Question

A game requires a player to toss a coin. If the outcome is head, then the player will get 4 chips from a box containing 9 blue chips, 5 red chips and 2 white chips. Otherwise, the player loses the game. For every blue chip drawn, the player will receive a net winning equivalent to 1.5 of his bet. Otherwise, he will pay an equivalent of half of his bet per chip.

I. Compute the E(net winning) of this game.
a. +25% of the bet
b. -25% of the bet
c. -12.5% of the bet
d. +50% of the bet
e. +12.5% of the bet

II. What percentage of the bet should the player pay for every non-blue chip drawn to make the game fair?
a. 28.6%
b. 62.3%
c. 15.7%
d. 48.5%
e. 35.7%

Answer 1