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Expected Value

Question 5 • CREDIT RE-SEAT MNPS Integrated Math III IC S2 26-27

For what expected value is a game fair?

Answer
A
E(X) < 0
B
E(X) = 0
C
E(X) = 1
D
E(X) > 0

Explanation

A game is fair when, over many plays, the expected net gain or loss is zero. Thus the expected value is E(X) = 0, which is choice B.

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