A 65% chance of winning $10 and a 35% chance of losing $5 would be classified as a(n)

Name: A 65% chance of winning $10 and a 35% chance of losing $5 would be classified as a(n)
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

A better-than-fair gamble is one where the expected value is positive, meaning you can expect to make a profit over time. In this case, the expected value is (0.65*$10) + (0.35*(-$5)) = $4, which is greater than $0. Therefore, it is a better-than-fair gamble.

A 65% Chance of Winning $10 and a 35% Chance