Answer: Expected value of playing the game is $0.
Step-by-step explanation:
Since we have given that
Total number of colored chips = 20
Number of blue chips = 2
Number of purple chips = 4
Number of green chips = 7
Number of red chips = 7
Amount of prize he gets for blue chip = $10
Amount of prize he gets for a purple chip = $5
No amount is given for red or green
Amount he had to pay = $2
So, Expected value of playing the game is given by
[tex]\frac{2}{20}\times 10+\frac{4}{20}\times 5+7\times 0+7\times 0-2\\\\=1+1-2\\\\=2-2\\\\=\$0[/tex]
Hence, Expected value of playing the game is $0.
Answer: $0
Step-by-step explanation:
Given : Total colored chips  in the bottle= 20
No. of blue chips = 2
Probability of getting blue chip= [tex]\dfrac{2}{20}=0.1[/tex]
Prize for blue chip = $10
No. of purple chips = 4
Probability of getting purple chip= [tex]\dfrac{4}{20}=0.2[/tex]
Prize for purple chips = $5
No. of green chips = 7
No.of red chips = 7
Probability of getting green chip or red chip= [tex]\dfrac{7+7}{20}=0.7[/tex]
Price for green or red chip = 0
Amount you paid to play the game = $2
Then , the expected value of playing the game will be :-
[tex]0.1\times\$10+0.2\times\$5+0.7\times\$0-\$2\\\\=\$1+\$1-\$2=\$0[/tex]
Hence, the expected value of playing the game = $0
