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04-11-2017
Mathematics

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In a game, you have a 1/36 probability of winning $85 and a 35/36 probability of losing $4. What is your expected value?

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04-11-2017

The expected value 4

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04-11-2017

In 36 games you would win 1 and lose 35, so the total of all outcomes is 85-4×35=85-140=-55.
The expected value is the mean of these=-55/36=a loss of $1.53.

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