Calculate expected value?

  1. A wheel of fortune consists of 3 fields, which are labeled as follows:

1st field: 1€

2nd field: 2€

3rd field: 0€

The first field is half the size of the entire Wheel of Fortune. The second and third fields are each the same size. The following game of chance is offered:

The player pays a stake of €1.00 and is allowed to spin the wheel once. The field labels indicate how much money the player will receive if the wheel stops on that field. Determine the player's expected winnings.

That's the task, and I don't understand any of it. Could someone please help me?

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MichaelH77
9 months ago

Probabilities:
1. Field 0,5
2 and 3rd field each 0.25

Win = payout – bet

Expected value for profit
E(X) = 0.5*1€ + 0.25*2€ + 0.25*0€ – 1€