Question

A person spins the pointer and is awarded the amount indicated by the pointer.



It costs $6 to play the game. Determine:


• The expectation of a person who plays the game.


• The fair price to play the game.

Please see attachment

Answer 1

messed that all up let me try again

Answer 2

and do it correctly. you pay $6 and you can win 2, 8 or 12 so your actual winnings are -4, 2 or 6

Answer 3

multiply what you win by the probablity you win it and get
\[-4\times \frac{1}{2}+2\times\frac{1}{4}+6\times \frac{1}{4}=0\]

Answer 4

because your expectation is zero, the game is fair