Dec 9 - Expected Value for a Game of Chance

Front

What are the odds of winning in a fair game of chance?

Back

50-50 or 1 in 2

Front

What is the expected value of a fair game?

Back

zero.

Front

Explain the concept of odds in gambling.

Back

The likelihood of a particular outcome happening and the potential payout for a bet.

Front

In a game with 10 floating ducks, there are 2 ducks with a green dot on the bottom. What is the probability of selecting a green duck?

Back

0.2

Front

A student group sells 500 raffle tickets for $2 each. What is the expected value of a ticket if the top prize is $100, second prize is $50, and five 3rd prizes are $20 each?

Back

lose an average of $1.50

Front

Define 'Expected Value' in the context of games of chance.

Back

The average amount one can expect to win or lose per bet if the game is played many times.

Front

What is the formula for calculating expected value?

Back

Expected Value = (Probability of Winning x Amount Won) - (Probability of Losing x Amount Lost)

Front

If a game has a 30% chance of winning $10 and a 70% chance of losing $5, what is the expected value?

Back

$1.50

Front

What does a probability of 0.5 indicate?

Back

There is an equal chance of the event occurring or not occurring.

Front

In a game where you can win $50 with a probability of 0.1 and lose $10 with a probability of 0.9, what is the expected value?

Back

- $7.00