Consider the following scenario when answering the following questions:
Ivett and Desiree are considering playing a game called Twenties versus Fifties.In this game,Ivett will place a $20 bill on the table,and Desiree will place a $50 bill on the table.Both players will then toss a fair coin.If both Ivett and Desiree toss heads or if they both toss tails,Ivett wins the $70 on the table.If one woman tosses heads and the other tosses tails,Desiree wins the $70 on the table.
-For Desiree,the expected value of this game is
A) -$15.
B) -$35.
C) $15.
D) $35.
E) $70.

Question

Quizplus · Accepted Answer

The expected value of a game is the sum of the products of the possible outcomes and their probabilities. In this game, there are two possible outcomes: Ivett wins $70 or Desiree wins $70. The probability of Ivett winning is 1/2, and the probability of Desiree winning is also 1/2. Therefore, the expected value of the game for Desiree is (1/2) * $70 + (1/2) * -$70 = $0.

Consider the Following Scenario When Answering the Following Questions