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26 September, 21:52

Two teams, A and B, are about to play a game. Previous records show that A has an 80% chance of winning, while B has a 20% of winning. Spectators can either choose to buy regular tickets or special tickets. A spectator with a special ticket will receive a refund of $2 if team A wins and a refund of $5 if team B wins. How much extra, minimally, should the special ticket cost to cover the expected value of the refunds offered?

$16.00

$2.60

$26.00

$3.00

$10

+5
Answers (1)
  1. 27 September, 00:34
    0
    How much extra, minimally, should the special ticket cost to cover the expected value of the refunds offered?

    $16.00

    $2.60

    $26.00

    $3.00

    $10

    It would

    be 16.00
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