CPM Homework Help : INT2 Problem 9-120

Mr. Kyi has placed three red, seven blue, and two yellow beads in a hat. If a person selects a red bead, they win $$3$ . If that person selects a blue bead, they lose $$1$ . If the person selects a yellow bead, they win $$10$ . What is the expected value for one draw? Is this game fair? If not, then who has the advantage in this game? Explain.

Hint:

Review the math notes box in lesson 3.2.1 to see how to compute expected value.

Answer:

$(\frac{3}{12})(3) \ + \ (\frac{7}{12})(-1) \ + \ (\frac{2}{12})(10) \ = \ \frac{11}{10} \ \approx \ $1.83.$

The game is not fair because the expected value is not zero. The player will come out
ahead over time, so students may want to play the game!