Assume that the pond contains 120 fish: 97 green, 22 yellow, and 1 red. A contestant pays $0.60 to randomly catch one fish and receives $0.40 if the fish is green, $0.95 if the fish is yellow, and $11.00 if the fish is red.

Question

How much (on average) does the carnival gain on each play?

Answer 1

In the long run, it would be equivalent to 120 plays with
120*0.60=72 as revenue and the following payouts:
97 green at 0.95
22 yellow at 0.40
1 red at 11.00

Subtract payouts from revenue and divide by 120 plays to get gain on individual play.