Answer:
The expected dollar value for a person playing this game is -$1, that is, a loss of $1.
Step-by-step explanation:
Expected dollar value:
Probability of each outcome multiplied by it's monetary outcome.
Outcomes:
45% probability of winning $100.
45% probability of losing $100.
10% probability of losing $10.
What is the expected dollar value for a person playing this game?
[tex]E = 0.45*100 - 0.45*100 - 0.1*10 = -1[/tex]
The expected dollar value for a person playing this game is -$1, that is, a loss of $1.
