Tanya is considering playing a game at the fair. There are three different ones to choose from, and it costs $2 to play a game.

Question

Tanya is considering playing a game at the fair. There are three different ones to choose from, and it costs $2 to play a game. The probabilities associated with the games are given in the table.
                       Lose $2            Win $1       Win $4
Game 1            0.55                 0.20            0.25
Game 2            0.15                  0.35           0.50
Game 3            0.20                   0.60           0.20
(a.) What is the expected value for playing each game?
(b.) If Tanya decides she will play the game, which game should she choose? Explain.

Kunduz · Accepted Answer

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