question archive 8 singles, 8 fives, 3 twenties, and 2 hundred dollar bills are all placed in a hat
8 singles, 8 fives, 3 twenties, and 2 hundred dollar bills are all placed in a hat
Subject:MathPrice:2.86 Bought5
8 singles, 8 fives, 3 twenties, and 2 hundred dollar bills are all placed in a hat. If a player is to reach into the hat
and randomly choose one bill, what is the fair price to play this game? State your answer in terms of dollars
rounded to the nearest cent (hundredth). Do not include a $ sign in your response.
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The right way to calculate the fair price of the game is to calculate the weighted average. The weighted average takes into account the probability of picking of any of the bill.
The weighted average can be calculated as = (8*1 + 8*5 + 3*20 + 2*100)/21
This value comes out to be 14.67. Thus, it is the fair value to play the game.
