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There is a game where the outcome is a random integer from 1 to 10, costing $20 to enter. If the outcome is odd, you win $33. If the outcome is even, you win nothing. If you play the game, what is the expected profit?

Respuesta :

ANSWER

$-1.40

EXPLANATION

The expected profit is:

[tex]E(X)=P(\text{odd)}\cdot(33-20)+P(even)\cdot(0-20)[/tex]

In both cases you pay $20, so you have to subtract that from what you win.

Between 1 and 10 there are 5 odd numbers and 5 even numbers:

[tex]\begin{gathered} P(\text{odd)}=\frac{1}{5} \\ P(\text{even)}=\frac{1}{5} \end{gathered}[/tex]

The expected profi