Mathematics

Hana Carr

13 December, 10:06

A person must pay

$

$

7 to play a certain game at the casino. Each player has a probability of 0.04 of winning

$

$

11, for a net gain of

$

$

4 (the net gain is the amount won 11 minus the cost of playing 7).

Each player has a probability of 0.96 of losing the game, for a net loss of

$

$

7 (the net loss is simply the cost of playing since nothing else is lost).

What is the Expected Value for the player (that is, the mean of the probabiltiy distribution) ? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places.