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Mathematics, 06.12.2020 15:00 uhhhhhidk
Uppose that your friend Art Vandelay offers you the following bet: He will spin a top which has 4 possible outcomes (white, black, red, yellow). Each outcome occurs with the same probability of 25%, in other words this is a "fair top." If the top ends up on black, he will pay you $100. If the top ends up on white he will pay you $40. If the top ends up on yellow he will pay you $20. And if the top ends up on red you have to pay him $100. NOTE: The Expected Value of this bet is EV = (100*.25) + (40*.25) + (20*.25) - (100*.25). Do you take the bet?
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Uppose that your friend Art Vandelay offers you the following bet: He will spin a top which has 4 po...
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