Answer:
For each game, the player should be expected to lose $0.0263.
Step-by-step explanation:
A probability is the number of desired outcomes divided by the number of total outcomes.
Probability of each outcome:
1/38 probability of winning, that is, 1/38 probability of receiving $36.
37/38 probability of losing, that is, 37/38 probability of losing $1.
On average, how much money should a player expect to win or lose if they play this game repeatedly?
For each game:
[tex]E(X) = \frac{1}{38}*36 - \frac{37}{38}*1 = \frac{36 - 37}{38} = -\frac{1}{38} = -0.0263[/tex]
For each game, the player should be expected to lose $0.0263.
