Question

four Tesch ponns AX04 12.6.005 0100 Submissions Many casinos have a game called the Big Six Money Wheel, which has 54 slots in which are displayed a Joker, the cesino logo, and various dolar amounts, as shown in the table at the top of the next column, Players may bet on the Joke, the casino loge, or one or more dollar denominations. The wheel is spun and if the wheel stops on the same place as the player's bet, the player wins that amount for each dolar bet. Denomination 140 (Doker) $40 (Casino logo) $20 $10 $5 $2 Number of slots 15 24 $1 1, a player bets $2 on the Caino logo denomination, nnd the player's expectation. (Round your answer to two decinal places.)

Answer 1

Let X is a random variable shows the winning amount. Since player bet on Casino logo so either he will win $40-$2=$38 or loss -$2. The probability of winning Casino logo is

P(casino logo) = 1/54

So

P(X=$38) = 1/54

P(X=-$2) = 53/54

The expected value is

E(X) =$38* P(X=$38) +(-$2) *P(X=-$2) = 38 * (1/54) + (-2) *(53/54) = -$1.26(answer)