Expected Value and Fair Games

Front

What does it mean to have a negative expected value in a lottery game?

Back

The player can expect to lose more money than they win in the long run.

Tags

CCSS.HSS.MD.B.5B

Front

What is a fair game?

Back

A game where the expected value is zero.

Tags

CCSS.HSS.MD.B.5B

Front

If the expected value of a spinner game is $4.75, what should the cost of a ticket to spin be to make this a fair game?

Back

$4.75.

Tags

CCSS.HSS.MD.B.5A

Front

Eva flips a coin. If she gets heads, she wins $4. If she gets tails, she loses $3. What is her expected value of a coin flip?

Back

$0.50.

Tags

CCSS.HSS.MD.B.5A

Front

What is the expected value?

Back

The expected value is the average outcome of a random event, calculated by multiplying each possible outcome by its probability and summing the results.

Tags

CCSS.HSS.MD.A.2

Front

Define expected value in the context of gambling.

Back

Expected value is the anticipated value for a given investment or bet, representing the average outcome over time.

Tags

CCSS.HSS.MD.A.2

Front

What is the formula for calculating expected value?

Back

Expected Value (EV) = Σ (Probability of Outcome × Value of Outcome).

Tags

CCSS.HSS.MD.A.2

Front

What does it mean if a game has an expected value greater than zero?

Back

The player can expect to make a profit in the long run.

Tags

CCSS.HSS.MD.B.5B

Front

What does it mean if a game has an expected value less than zero?

Back

The player can expect to lose money in the long run.

Tags

CCSS.HSS.MD.B.5B

Front

In a fair game, how do the probabilities of winning and losing relate to the expected value?

Back

The probabilities are balanced such that the expected value equals zero.

Tags

CCSS.HSS.MD.A.2