A Game Is Said to Be "Fair" If the Expected

question 44

Essay

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 0. 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? Does the game favor the player or the
owner? $$\begin{array} { r | c } \text { Outcome } & \text { Probability } \\\hline \text { Red } & .02 \\\text { Blue } & .04 \\\text { Yellow } & .16 \\\text { White } & .78\end{array}$$

---

Definitions:

Increased Access

The expansion of opportunities and resources available to individuals or groups.

African American

A term referring to individuals in the United States with partial or total ancestry from any of the Black racial groups of Africa.

Forbes List

An annual ranking published by Forbes magazine that lists the wealthiest individuals, companies, or other entities in various categories.

Wealthiest People

Individuals with the highest net worth globally, often cited in lists such as Forbes, representing significant economic power and influence.