Expected gain is $ 0.25
SOLUTION :
Expected gain / Loss
= P(get $1 bag) * ! + P(get $2 bag) * 2 + P(get $3 bag ) * 3 - Purchase cost
= 10/40 * 1 + 10/40 * 2 + 20/40 * 3 - 2
= 0.25 ($) Gain : First Option (ANSWER).
A convenience store has made up 40 grab bag gifts and is offering them for $2.00...
11. Grab Bags A convenience store has made up 20 grab! bag gifts and is offering them for $2.00 a bag. Ten bags! contain merchandise worth $1.00. Six bags contain mer- chandise worth $2.00, and four bags contain merchan- dise worth $3.00. Suppose you purchase one bag. What is your expected gain or loss?