A bag contains 1 gold marbles, 10 silver marbles, and 29 black marbles. Someone offers to play this game: You randomly select one marble from the bag. If it is gold, you win $4. If it is silver, you win $2. If it is black, you lose $1.
What is your expected value if you play this game?
1 answer
(1/40)(4) + (10/40)(2) - (29/40)(1) = -5/40
1 answer