Wilson Is Watching Two Different Roulette-Type Games at a Local

question 144

Multiple Choice

Wilson is watching two different roulette-type games at a local charity bazaar.Each game costs $1 to play.In one game,there are ten different numbers,and if the number he selects comes up,he will win $12.In the other game,there are 100 different numbers,but if the number he selects comes up,he will win $50.What should Wilson do based on expected value theory

• A) Play the first game because it has a higher expected value. 
• B) Play either one of the games because they both have the same expected value. 
• C) Play the second game because it has a higher expected value. 
• D) Not play either game because they both have such low odds of winning.

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Definitions:

Giffen Good

A product that people consume more of as the price rises, violating the basic law of demand in economics.

Prices Change

A variation in the market price of goods and services over time, influenced by factors such as supply and demand, inflation, or government policy.

Bananas

Bananas are a type of edible fruit, botanically a berry, produced by several kinds of large herbaceous flowering plants in the genus Musa.

Preferences

Economic term referring to the subjective tastes and desires that influence consumer choices and priorities.