Find the expected payback for a game in which you bet 9 on a

Find the expected payback for a game in which you bet $9 on any number from 0 to 499. If your number comes up, you get $2000.

The expected payback is $_______(round to the nearest cent as needed).

Solution

E(X)= X*P(X)

SINCE THERE ARE 500 NUMBERS AND WE CHOOSE 1

SO THE PROBABILITY OF THAT NUMBER BE P(X)= 1/500

SO E(X)= 2000*1/500 = 400