Question

HW 4.1, 4.2 Score: 15.25/18 17/18 answered Question 18 < > Result 7,7,7 7,7,5 7,$,$ $,$,$ Payout ($) Probability 50 0.002 10 0.04 5 0.05 2 0.08 A $1.00 slot machine pays out according to the table above, with the corresponding probabilities. The machine only pays out if you get a result that includes "7" or "$". a. The expected payout per spin (to two decimals) is $ b. If you play this machine 50 times, your expected net loss is $ Submit Question

Answer 1

a) Expected payout per spin will be = (49)(0.002)+(9)(0.04)+(4)(0.05)+(1)(0.08) - (1)(0.828)= 0.098+0.36+0.20+0.08-0.828 = -0.090

So the expected payout per spin will be 0.090.

b) If the game is played 50 times, then the expected loss will be 50*(0.09) = 4.5

So the expected loss will be $4.5