Question

at the royal dragon chinese restaurant, a slip in the fortune cookies indicates a dollar amount that will be subtracted from your total bill. a bag of 10 fortune cookies is given to you from which you will select one. if five fortune cookies contain \$1 off,\ four contain \$3 off,\ and one contains \$8 off,\ determine the expectation of a selection. dollars off (round to the nearest cent.)

Explanation:

Step1: Calculate the probability of each outcome

The probability of getting a "$1$ off" fortune cookie is \(P(1)=\frac{5}{10} = 0.5\).
The probability of getting a "$3$ off" fortune cookie is \(P(3)=\frac{4}{10}=0.4\).
The probability of getting a "$8$ off" fortune cookie is \(P(8)=\frac{1}{10}=0.1\).

Step2: Use the formula for expected value \(E(X)=\sum_{i}x_{i}P(x_{i})\)

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Answer:

\(2.50\) dollars off