Answer:
The correct option is A.
Step-by-step explanation:
The formula to compute the expected value is:
[tex]E(X)=\sum x\cdot P(X)[/tex]
The information provided can be summarized as follows:
X P (X)
Win $107 1/21
Lose -$5 20/21
Compute the value of expected winning as follows:
[tex]E(X)=\sum x\cdot P(X)[/tex]
[tex]=(107\times\frac{1}{21})+(-5\times\frac{20}{21})\\\\=\frac{107}{21}-\frac{100}{21}\\\\=\frac{107-100}{21}\\\\=0.33333333\\\\\approx \$0.33[/tex]
Thus, the value of expected winning is $0.33.
The correct option is A.
