Discrete Random Variables · IB Mathematics Analysis and Approaches

IB Mathematics Analysis and Approaches Quiz

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STATISTICS AND PROBABILITY

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A game of chance involves paying $5 to play. A player can win a prize of $10, $5, or $k. The probability of winning $10 is 0.1, the probability of winning $5 is 0.4, and the probability of winning $k is 0.5.

What must be the value of the prize

k

for the game to be fair? (A fair game is one where the expected net winnings are zero).

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