CPM Homework Help : CCG Problem 7-145

Jamika designed a game that allows some people to win money and others to lose money, but overall Jamika will neither win nor lose money. Each player will spin the spinner at right and will win the amount of money shown in the result. How much should each player pay to spin the spinner? Explain your reasoning.

Hint:

What is the probability of winning $\$3$ ? What is the probability of winning $\$1$ ?

More Help:

To find the expected value multiply each of the probabilities for $\$3$ and $\$1$ by the amount you would win. Add these two values together.

Step:

$\text{expected value} = (3)\left (\frac{1}{4}\right )+(1)\left (\frac{3}{4}\right )$

Answer:

expected value is $\$1.50$