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Ignacio enters into a game of chance. A bag of money has twelve $1 b.pdf

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Ignacio pays $25 to randomly select one bill from a bag containing money of various denominations - $1, $5, $10, $20, and $100 bills. The expected value of the bill Ignacio will select is the average value weighted by the number of each denomination. The expected value of the game for Ignacio is negative $25 since the average payout will be less than the $25 cost to play.

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Ignacio enters into a game of chance. A bag of money has twelve $1 bills, ten $5 dollar bills, sixteen $10 bills, eight $20 bills, and nine $100 bills. Ignacio pays $25 to pull one bill from the bag without looking into the bag. After Ignacio takes the bill out of the bag, he keeps the bill. (a) What is the expected value of the bill Gustaf pulls out of the bag? (b) What is Gustafs expected value of the game?

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