QuestionA jar has 63 marbles: 8 red, 25 blue, 30 green. Draw a marble: win \$20 for red, lose \$10 for blue, lose \$5 for green.
1. Find the expected outcome.
2. Is it profitable to play long-term?

Studdy Solution
Calculate the expected value of the game.
$$(x) = \$20 \times \frac{8}{63} - \$10 \times \frac{25}{63} - \$5 \times \frac{30}{63} = -\$.27$$The expected outcome of this game is a loss of $.27 per game. Therefore, it would not be profitable over time to play this game.