Back to Find the expected payoff for a game of chance — Problem 2 · Task Set 31
Exercises: Find the Expected Payoff for a Game of Chance
Work through each section in order. The payoff of an outcome is its NET value: the prize received minus the cost to play. The cost to play is subtracted from EVERY outcome, win or lose. The expected payoff is the sum of each net payoff times its probability. Its sign classifies the game: favorable to the player if positive, fair if zero, unfavorable if negative. Always include the "win nothing" outcome and make the probabilities sum to 1.
Grade 11·20 problems·~35 min·Common Core Math - HS Statistics and Probability·standard·hss-md-b-5a
Work through problems with immediate feedback
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Warm-Up: Net Payoff and Expected Value
These problems review the net-payoff idea and the expected-value formula.
1.
A spinner game costs $3 to play. A player can win $0, $5, or $20. Which list correctly gives the three net payoffs (after subtracting the cost to play)?