Supposed a certain game is fair and costs $3 if you lose and has a net payoff of $8 if you win. The only possible outcomes of the game are winning and losing. What is the probability of winning?
Added by Richard M.
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This means that the expected value of the game is zero. The expected value is calculated by multiplying each outcome by its probability and then summing these values. Let's denote the probability of winning as P(W) and the probability of losing as P(L). Since Show more…
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