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Expected Value

Question 11 • 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 player’s expected net gain is zero. This means the expected winnings balance the expected costs, so neither the player nor the game operator has an advantage on average. Therefore, the correct choice is E(X) = 0.

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