Spin-and-Win is under new management. The new management has changed the spinner as below and now charges $1 per spin. (The person spinning wins the amount pointed to by the spinner.)
A) What is the expected value for this game? (Show your work.)
B) What does your answer in part A mean if there are 1000 customers who play the game in a week?

Question

Spin-and-Win is under new management. The new management has changed the spinner as below and now charges $1 per spin. (The person spinning wins the amount pointed to by the spinner.)  
A) What is the expected value for this game? (Show your work.) 
B) What does your answer in part A mean if there are 1000 customers who play the game in a week?

Quizplus · Accepted Answer

The Answer is A)

\frac { 1 } { 2 } \cdot 25 + \frac { 1 } { 4 } \cdot 50 + \frac { 1 } { 4 } \cdot 200 - 100 = - 25

(cents).
B) With this many customers, they can expect to lose 25¢ per game, on average. From management's viewpoint, they should net about $250 per week, on average.

Spin-And-Win Is Under New Management