Suppose a slot machine has an expected payout of .95 cents on the dollar, meaning for every dollar you play, you get 95 cents back.What is your expected value for the amount lost per dollar played on this machine?
A)$0.95
B)-$0.05
C)-$1.00
D)The entire jackpot, if you play long enough.

Question

Quizplus · Accepted Answer

The expected value for the amount lost per dollar played on this machine is 1 dollar minus the expected payout of 0.95 dollars, which equals 0.05 dollars lost for every dollar played. Therefore, the answer is B, -$0.05.

Suppose a Slot Machine Has an Expected Payout of