Expected Value 4th Period

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?

• $1

• $0.50

• -$0.50

• $0

Suppose you buy a ticket for $6 out of a lottery of 1000 tickets where the prize for the one winning is to be $800. How much money do you take home (after paying for it)?

• $800

• -$6.50

• -$6

• -$5.20

A student group sells 500 raffle tickets for $2 each. At the drawing the top prize will be a gift certificate for $100. Second prize will be a $50 gift card and there will be five 3rd prizes, each a $20 gift card. Do you expect to win or lose (on average)? How much?

• lose an average of $5.50

• lose an average of $1.50

• win an average of $2.00

• lose an average of $10.00

Suppose you pay $1.00 to roll a fair die with the understanding you will get $3.00 back rolling a 4 or a 2, and nothing otherwise. What is the expected amount you win?

• $0.00

• -$1.00

• $1.00

• $3.00

A game consists of rolling a colored die with three red sides, two green sides, and one blue side. A roll of a red loses. A roll of green pays $2.00. A roll of blue pays $5.00.   The charge to play the game is $2.00. What is the expected value

• $0
• -$0.50
• $.67
• $-1.50

One option in the game of roulette is to bet $6 on red. (There are 18 red compartments, 18 black compartments and two compartments that are neither red nor black.) If the ball lands on red, you get to keep the $6 you paid to play and you are awarded an additional $6. If the ball does not land on red, you win nothing and you lose your $6 bet. Find the expected payback (on average) for this game if you bet on red.

• -$5.54
• -$0.32
• -$4.48