At a carnival roulette wheel,a player can either win $10,$30,or $80.If it costs $20 to play,should the player expect the game to be fair?
A)Yes,because it costs to play
B)No,because on average the individual would be earning money on the wheel
C)No,because all the carnival attractions are unfair
D)Need more information

Question

​At a carnival roulette wheel,a player can either win $10,$30,or $80.If it costs $20 to play,should the player expect the game to be fair?
A)​Yes,because it costs to play
B)No,because on average the individual would be earning money on the wheel
C)No,because all the carnival attractions are unfair
D)​Need more information

Quizplus · Accepted Answer

To determine if the game is fair, we need to calculate the expected value (EV). The EV is the sum of the probabilities of each outcome multiplied by the corresponding payoff. The probabilities are all equal since there are three possible outcomes, each with a probability of 1/3. So, the EV is (1/3)($10) + (1/3)($30) + (1/3)($80) = $40/3. Since it costs $20 to play, the player would be expected to earn $20/3 on average, meaning they would be earning money on the wheel (assuming the payouts are honest and accurate). Therefore, the game is not fair.

​At a Carnival Roulette Wheel,a Player Can Either Win $10,$30,or

At a Carnival Roulette Wheel,a Player Can Either Win $10,$30,or