Textbook Problem

APPLICATIONS

25-30 ■ A Fair Game? A game of chance is described. (a) Is the game fair? (b) If the game is not fair, find the payout amount that would make the game fair.

A bag contains two silver dollars and six slugs. A game consists of reaching into the bag and drawing a coin, which you get to keep. If you draw a slug, you pay $\$0.50$.