Sam the gambler offers you an opportunity to play one of several games in which a...

Sam the gambler offers you an opportunity to play one of several games in which a 10-sided die is rolled. If an 8 or 9 or 10 is rolled on the die, you win money. Otherwise you pay money. Here are the gains and losses for the possible games. Game 1 win-$70 lose-$30 Game 2 win-$30 lose-$70 Game 3 win-$50 lose-$20

1. Calculate the Expected Value for each of the three games.

2. Which game should you play?

3. Which game should neither you nor Sam bother playing for money?

Expert Solution

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orchestra answered 2 years ago

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