Imagine you are in a game show. There are 20 prizes hidden on a game board with

Question

Imagine you are in a game show. There are 20 prizes hidden on a game board with 100 spaces. One prize is worth $50, nine are worth $20, and another ten are worth $10. You have to pay $5 to the host if your choice is not correct. Let the random variable x be the money you get or lose. Show exactly how you go the answer.
(a) Complete the following probability distribution.

(b) What is your expected winning or loss in this game? Be specific in your answer whether it’s winning or loss.

x p(x) -5$ 10$ 20$ 50$

Explanation / Answer

Solution :

( a ) Probability distribution table

( b )

Expected value= 5 * 0.8+10 * 0.1 +20 * 0.09 +50 0.01

= -4 + 1 + 1.8 + 0.5

= -4 + 3.3

= -0.7

Expected loss = 0.7 $

x P( x ) -5$ 0.8 10$ 0.1 20$ 0.09 50$ 0.01

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