Scenario: A bag contains ten green balls, five blue balls, and fifteen yellow balls. If an individual picks a green ball from the bag, she wins $200. If she picks either a blue ball or a yellow ball, she loses $300.
-Refer to the scenario above.What is the expected value of the game?

Question

Quizplus · Accepted Answer

The expected value (EV) can be calculated using the formula: EV = (probability of winning * amount won) + (probability of losing * amount lost). Here, the probability of picking a green ball and winning $200 is 10/30, and the probability of picking a blue or yellow ball and losing $300 is 20/30. Thus, EV = (10/30 * $200) + (20/30 * -$300) = $66.67 - $100 = -$33.33.

Scenario: a Bag Contains Ten Green Balls, Five Blue Balls