You pay $3 to enter a game. If you get a a heart you get $10 if not you get nothing
Expected Value
you enter a game at a casino for $100 if you pull a club you get $150 if you pull anything else you get nothing
Fair or Expected value
you enter a game $25 if the number written down is even you get $50 if not you get nothing
100
What is 1/4
Probability of hearts
100
You design a coin flipping game. He decided to charge participants $2 to play the game. If heads is flipped, the participant wins $4, and if tails is flipped, the participant wins 25 cents.
12.5%
100
1/4
probability
100
What is an anticipated value for an game
Expected Value
100
probability of the number being odd
1/2
200
What is 3/4
probability of no hearts
200
You enter a game for $1. You roll a dice if its even you get $10 if you loose you get nothing.
ev=26.6%
200
is it fair
not fair -62.5%
200
What is not losing or winning or 0
Fair
200
$25
net value if you the number is even
300
What is $7
Net Value if you win
300
You enter a coin flip for $1 if it lands on heads you get $2 if it lands on tails you get $3.
15%
300
$50
net value if you pull a club
300
(% paid if you win)×(P(Win)
Expected Valuve
300
-25/1
PV if the number is odd
400
What is -$3
net value if you loose
400
87.5%
400
PV=-75/1
PV if you pull other cards
400
Ev=0
fair game
400
25/2
PV if the number is even
500
What is the EV
-5%
500
You enter a of roulette game for $10 if you land on red you win $20 and if you land on black you get nothing.
-10
500
-62.5
Expected value
500
average amount you can win per game
Expected value
500
-12.5
Expected Value