Two black chips and three red chips are put into a bag. Two points are awarded for each black chip drawn, and one point is lost for each red chip drawn. What is the expected value for each round if there are two draws per round and the chips are replaced after each draw?

A black chip has a 2/5 chance of being drawn and earns 2 points, while a red chip has a 3/5 chance and loses 1 point. The expected score for one draw is (2/5 × 2) + (3/5 × −1) = 1/5 point. Since the chips are replaced, each of the two draws has that same expected value, so the round’s expected value is 2 × 1/5 = 0.4 points. The correct choice is D, 0.4.

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