Question

You are playing a game where you have
1
-
4
a chance of winning $500,
1
-
4
chance of winning $200 and
1
-
2
chance of losing $375. What is your expected payoff?

Answer 1

\[\Large \frac14 \cdot 500 +\frac 14 \cdot 200 \ -\frac 12 \cdot 375\]

Answer 2

A)
-$12.50
B)
$108.33
C)
$325
D)
$362.50


Hint

Answer 3

do the math...

Answer 4

It's -$12.50

Answer 5

\[\Huge \checkmark\]