3. Section 8.3
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Finally, we will multiply the region's payout with its corresponding probability. l|l Left spinner & Right spinner 20: 1/4(20)=5 & 10: 1/2(10)=5 [0.8em] & 5: 1/2(5)=2.5 Since there is only one region in the left spinner that pays off, the expected value is 5. To obtain the expected value of the right spinner, we have to add the expected value of both regions to get the total expected value per spin. 5+2.5=7.5 As we can see, the expected value from the right spinner is higher. Therefore, the class should choose this spinner.
20: 1/4(100)=25 Now,the expected value from the left spinner is 25. Therefore, the left spinner should be chosen.