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Armando wants to raise funds at his school fair. He plans to charge 10 cents to pick marshmallows from his bag without looking. He will give: • 20 cents to anyone who picks a Blue marshmallow. • 50 cents to anyone who picks a Yellow marshmallow. • $1 to anyone who picks a White marshmallow. • Anyone picking a Red or Green marshmallow will lose their money There are as equal number of marshmallows of each color. 3a. Show work and explain why Armando will lose money with this game. Justify using mathematics.

Answer :

Since the expected value for this game is negative, Armando will lose money.

  • The expected value is given by the sum of all outcomes multiplied by it's respective probability.

In this problem:

  • There are blue, yellow, white, red and green marshmallows, each with a [tex]\frac{1}{5}[/tex] probability of being picked.
  • If red or green marshmallows are picked, Armando get the charge of $0.1.
  • If someone picks a blue marshmallow, he loses $0.1.
  • If someone picks a yellow marshmallow, he loses $0.4.
  • If someone picks a white marshmallow, he loses $0.9.

Thus, the expected value is:

[tex]E = 0.1\frac{2}{5} - 0.1\frac{1}{5} - 0.4\frac{1}{5} - 0.9\frac{1}{5} = \frac{0.2 - 0.1 - 0.4 - 0.9}{5} = -0.24[/tex]

Since the expected value for this game is negative, Armando will lose money.

A similar problem is given at https://brainly.com/question/24855677

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