Question

A person spins the pointer and is awarded the amount indicated by the pointer.

(A circle with 3 sections divided: $2, $5, $10). The pointer stops on $2.

It costs $6 to play the game. Determine:


a.) The expectation of a person who plays the game.

b.) The fair price to play the game.

Answer 1

expected value
= (1/3)($2) + (1/3)($5) + (1/3)($10) = $5.67

Draw your conclusion.

Answer 2

what do you mean by draw your conclusion?