In a game you pay 50 to play One box has a 100 check in it A

In a game you pay $50 to play. One box has a $100 check in it. Another box containsa $500 check. All the other boxes are empty. You choose a box without having any knowledge of which is which. What is your expectation for this game?

a.) $60

b.) $550

c.) $50

d.) $10

Solution

answer b $ 550.

expectation = (1*100+ 2*500)/2 = 1100/2 =550