A game pays 8 with probability 1/4 and zero otherwise. Entry costs 3. Find expected net gain.
- Finite-distribution probabilities must be nonnegative and sum to one; dependence is only as explicitly stated.
Skills and prerequisite lessons
Scope: School extension · This task develops the school textbook skill beyond the explicitly listed JAE syllabus topics.
Recent attempts (up to five)
Working and explanation
BUILD THE REASONING
Hint 1
Hint 2
Worked solution
Subtract the fee from expected payment.
Establish and simplify this mathematical relation.
Establish and simplify this mathematical relation.
An expected loss is an average, not a claim that every play loses the same amount.
The requested value is -1.
Checks and common pitfalls: An expected loss is an average, not a claim that every play loses the same amount.
Think first. Reveal a hint when the class is ready.