Question

Will fan and medal!
An auction website charges $1 for a bid. The bidding starts at 1¢ and goes up 1¢ at a time. A television that is worth $2000 is won, on average, with a bid of $160. You make one bid at random.

Find the expected value of the outcome of the bid. (Write as an exact decimal, with a negative sign, if necessary.)

Expected Value: $

Answer 1

160 in 1¢ steps means 16,000 bids

so you invest $1 with a 1/16000 probability of a $2000 return

the expected value (in dollars) is ___ -1 + [(1/16000) * 2000)]


this is why auction websites exist

Answer 2

thats correct but I must say it looks a lot like the yahoo answer for the same question

Answer 3

yeah thats the exact same answer from yahoo answers haha @BioHazard9064. but so what do i put in the answer box?

Answer 4

So its a fill the blank question fun

Answer 5

wow

Answer 6

so if its -1+ [(1/16000) * 2000)] = -0.875

but that don't help much

Answer 7

to be honest I cant solve this but I know someone who might

Answer 8

@DaBest21 Need Some help

Answer 9

ok

Answer 10

Im stuck

Answer 11

@em2000 does that alot

Answer 12

it is a 1/16,000 chance of earning 1,999 while there is a 15,999 chance of losing a dollar so find 1/16000 which is 0.0000625 so do 1-0.0000625=.9999375 so .9999375*-1=-.9999375+(1999*.0000625=.1249375+-.9999375=0.875 @BioHazard9064 @madison.bush