In the game Plinko on The Price is Right a contestant drops

In the game \"Plinko\" on The Price is Right a contestant drops a chip, which randomly falls into a slot that is market with a dollar designation. There are nine slots, two of which are market $0. tow are marked S100, two are market $500, tow are market $1000. and one is labeled $5,000. If a chip is dropped, what is the probability that it will land in a $1,000 slot? What is the probability a chip will land in a slot valued at less than $1,000? What is the expected value for this game?

Solution

(a)

Probability(it will land in a $1000 slot) = 2/9

(b)

Probability(slot valued less than 1000) = 6/9 = 2/3

(c)

Expected value of the game = 2/9*0+2/9*100+2/9*500+2/9*1000+1/9*1000=$466.67