CPM Homework Help : CCG Problem 5-116

Mr. Kyi has placed $3$ red, $7$ blue, and $2$ yellow beads in a hat. If a person selects a red bead, he or she wins $\$3$ . If that person selects a blue bead, he or she loses $\$1$ . If the person selects a yellow bead, he or she wins $\$10$ . What is the expected value for one draw? Is this game fair?

Step:

For expected value you need to find the probability of drawing each marble and multiply that probability by the amount you could win.
The expected value is the total of these 3 outcomes.

$\text{Expected value = }\frac{3}{12}(3) + \frac{7}{12}(-1) + \frac{2}{12}(10)$

Use the eTool below to graph the line.
Click the link at right for the full version of the eTool: 5-116 HW eTool