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Math Help - Probability Distribution

  1. #1
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    Probability Distribution

    Can anyone help me with the probability distribution of the following game

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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by Infiniti View Post
    Can anyone help me with the probability distribution of the following game

    Each result 1, 2, 3, and 4 has an equal chance of occuring and that is 1/4.

    So the player wins with probility 1/4 and loses with probability 3/4.

    His expected return is:

    r = (4)(1/4) + (0)(3/4) - 2 = -1

    That is he gets $4 a quarter of the time $0 3/4 of the time and always pays
    $2 to play. We could treat the cost to play differently to get:

    r = (2)(1/4) + (-2)(3/4) = -1.

    RonL
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  3. #3
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    Is this for the player or house?

    What do you make of this?

    Chance of 3: 1/4
    Payoff for 3: $2

    Chance of non-3: 3/4
    Payoff for non-3: -$2

    Expected return: 1/4 * $2 + 3/4 * -$2

    Is it correct?
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  4. #4
    Grand Panjandrum
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    Quote Originally Posted by Infiniti View Post
    Is this for the player or house?

    What do you make of this?

    Chance of 3: 1/4
    Payoff for 3: $2

    Chance of non-3: 3/4
    Payoff for non-3: -$2

    Expected return: 1/4 * $2 + 3/4 * -$2

    Is it correct?
    That is the second of the calculations of return I gave (they are both for the
    player)

    RonL
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