Question

for the wheel pictured on the right, assume that a person spins the pointer and is awarded the amount indicated by the pointer. if it costs \\$5 to play the game, determine (a) the expectation of a person who plays the game and (b) the fair price to play the game.

a. what is the expectation? \\$
(round to the nearest cent as needed.)

b. what is the fair price to play the game? \\$
(round to the nearest cent as needed.)

Explanation:

Determine the probabilities of the spinner outcomes

Using the Spinner Probability knowledge point

$$
LATEXBLOCK0
$$

Calculate the expected gross winnings

Using the Expected Value knowledge point

$$
LATEXBLOCK1
$$

Calculate the expectation of a player

Using the Expected Value knowledge point

$$
LATEXBLOCK2
$$

Determine the fair price to play the game

Using the Fair Price knowledge point

$$
LATEXBLOCK3
$$

Answer:

Question a

What is the expectation? $<blank>1.50</blank>
(Round to the nearest cent as needed.)

Question b

What is the fair price to play the game? $<blank>6.50</blank>
(Round to the nearest cent as needed.)