Problem 35 of 7
Decide whether the game is fair using expected value from pay $5 to play; win $10 with probability 0.5 and win nothing otherwise.
Using a hint is okay. It just tells the trainer to give you a little more review.
Hidden until you reveal it.
compare expected value to zero or cost.
Hidden until you reveal it.
Use net expected value and compare to zero for fairness.
Enter your answer
Your answer is equivalent to the expected form.
Walkthrough
Full solution stays hidden until you ask for it.
1. Compute net outcome for each result.
2. Multiply each net outcome by its probability and sum.
3. Compare expected value to zero.
Use the worked steps, then substitute the final answer back into the original relationship to confirm it satisfies the prompt.
Judging fairness from highest possible prize alone.