SOLVED ANSWER

QUESTION 1

SOLUTION 1

$0 with a probability of 3/8

$20 with a probability of 1/8

$5 with a probability of 1/8

Expected winnings = ($0 * 3/8) + ($20 * 1/8) + ($100 * 1/8) + ($10 * 1/8) + ($0 * 1/8) + ($20 * 1/8) + ($5 * 1/8)

QUESTION 2

You are invited to a poker game. $750 goes to the winner, $500 goes to second place, and $250 goes to third. You have a 25% chance of winning, 30% chance of coming in second, and a 45% chance of coming in third. a. What would be your expected winnings if you entered the tournament? b. If the tournament cost $400 to enter, do you think it's worth entering?

SOLUTION 2

To calculate your expected winnings, we need to multiply the probability of each outcome by the corresponding prize amount and then sum them up.

Expected winnings = (Probability of winning * Prize for winning) + (Probability of coming in second * Prize for second) + (Probability of coming in third * Prize for third)

Expected winnings = (0.25 * $750) + (0.30 * $500) + (0.45 * $250) Expected winnings = $187.50 + $150 + $112.50 Expected winnings = $450