There are ten evolopes in a box. Each envolope contains a single bill. Of the bills, five are one-dollar bills, two are five-dollar bills, two are ten-dollar bills and one is a twenty dollar bill.
a) Find the expected value of the draw. Interpret the meaning of this expected value.
b) If you were the casino operator of this game, what would you chared people to select an envolope? Explain. Refer to answer in part a. The cosino wants to make money to keep the customers playing.
Help me understand. Thanks =)