Explanation Given: A total of 200 , 000 entries are received in a contest and out of that one person will win $ 100 , 000 , two will win $ 20 , 000 each, and two will win $ 10 , 000 . Explanation: Let X be the payoff of the events and P be the probabilities of the events. Let a be the event that the person wins $ 100 , 000 , and b , c , and d be the events that the person wins $ 20 , 000 , $ 10 , 000 , and nothing, respectively. P ( a ) = 1 200000 P ( b ) = 2 200000 P ( c ) = 2 200000 P ( d ) = 199995 200000 and X ( a ) = $ 100 , 000 X ( b ) = $ 40 , 000 X ( c ) = $ 10 , 000 X ( d ) = − $ 1 Expected payoffs is the weighted sum of the probabilities of events a , b , c , and d , and their payoffs

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ISBN: 9780321979438

Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey

Publisher: PEARSON

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Chapter 8.5, Problem 53E

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The expected payoff in a game of chances and whether the game should be played.

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Chapter 8.5, Problem 52E

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