After finishing the competition in 24th place you have a little extra spending money to have fun with in Vegas. Deciding to take a break from the gambling you are looking into booking a helicopter tour of the Hoover Dam. As part of a promotional deal the tour company is offering you a spin at the coupon wheel. One spin costs $10 and will be good for a tour discount based on where the wheel stops. The table below shows the probability distribution of the discounts.
|
X
|
$5
|
$15
|
$20
|
$0
|
$50
|
|
P(X)
|
0.25
|
0.333333
|
0.166667
|
0.166667
|
0.083333
|
A. What is the expected value of X (the discount you receive)?
B. Should you purchase a spin? Explain