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Home > PC3 > Chapter 12 > Lesson 12.3.2 > Problem 12-145

12-145.

Jack is designing a game for the school fundraiser. Players will be paying for each time they play the game. There will be three prizes. The smallest prize has a value of ; the next prize has a value of . Jack has not yet determined the value of the largest prize. The probability of winning the smallest prize is , the probability of winning the second prize is , and the probability of winning the largest prize is . The probability of not winning any prize is . If the school wants earn an expected value of per game played, what should Jack choose as the value of the largest prize?

If the school wants to earn $1 per game played, then the expected value for the player is .