In a gambling game, on every play, there is a 0.1 probability that you win $7...

In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. What is the expected value of this game?

Expert Solution

Expected value = 7 * 0.1 - 1 * 0.9 = -$0.2

orchestra answered 2 years ago

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