Question

A person spins the pointer and is awarded the amount indicated by the pointer.
It costs $8 to play the game. Determine:


The expectation of a person who plays the game.


The fair price to play the game.

Answer 1

Expectation
=Sum(probability*outcome)
Can you figure that out?

A fair price for the game would be to pay what he expects to gain.

Answer 2

The person would expect to win back part of their money on each spin. ($2.00 x 2/4) + ($12 x 1/4) + ($5 x 1/4)$1 + $3 + $1.25 = $5.25 is a fair price to play the game

Answer 3

like this

Answer 4

Yes, that's correct!

Answer 5

thank you

Answer 6

You're welcome! :)