A game is said to be fair if the expected value for winnings is 0, that is, in the long run, the player can expect to win nothing. Consider the following game. The game costs $1 to play and the winnings are $5 for red, $3 for blue, $2 for yellow and nothing for white. The following probabilities apply. What are your expected winnings?
Outcome Probability
Red 0.02
Blue 0.04
Yellow 0.16
White 0.78