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
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Question

Quizplus · Accepted Answer

A better-than-fair gamble is one where the expected value is positive, meaning that the potential gains outweigh the potential losses. In this scenario, the expected value would be:

(0.65 x $10) + (0.35 x -$5) = $6.50 - $1.75 = $4.75

Since the expected value is positive, this would be considered a better-than-fair gamble.

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