An urn contains 4 green, 6 blue and 10 yellow chips.
You pay $5 to draw a chip from the urn. Here are the rules of the game:
if you draw a green chip, the dealer returns you your bet and gives you an additional $5.
if you draw a blue chip, the dealer returns you your bet and gives you $1.
if you draw a yellow chip, the dealer keeps your $5.
What is the expected value of this game? (use formula for expected value of discrete distribution
How do I start solving this?
1 answer