Using Expected Value in Decision-Making Quiz

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| By Thames
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Thames
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Quizzes Created: 7252 | Total Attempts: 9,525,313
| Questions: 20 | Updated: Nov 16, 2025
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1) What is the expected payout (before subtracting the $3 cost) of one spin?

Explanation

There are 8 equal sectors. Expected payout = (3/8)*2 + (2/8)*5 + (1/8)*10 + (2/8)*0 = 26/8 = $3.25.

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About This Quiz
Using Expected Value In Decision-making Quiz - Quiz

This quiz focuses on applying expected value to real-world decisions. It explores situations involving carnival games, lotteries, insurance policies, and investments, where the goal is to evaluate the expected net gains or losses and use expected value to make informed decisions.

2)
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2) What is the expected net gain (payout minus $3 cost) per spin?

Explanation

Expected payout = $3.25. Net gain = 3.25 − 3.00 = $0.25.

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3) Based on expected value, is the game favorable to the player?

Explanation

Expected net gain is +$0.25.

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4) If a player spins 100 times, what is the best estimate of the total net gain?

Explanation

Expected gain per spin = $0.25. For 100 spins: $25.

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5) A fair six-sided die... expected value?

Explanation

EV = (1/6)*12 + (2/6)*3 = 18/6 = 3.

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6) Lottery ticket expected net value?

Explanation

Expected prize = 0.4. Net = 0.4 − 2 = −1.6.

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7) Insurance break-even premium?

Explanation

0.02 * 5000 = 100.

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8) Charity raffle expected net value?

Explanation

Expected prize = 6. Net = 6 − 10 = −4.

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9) Which game has higher expected net value?

Explanation

Game A net = +1; Game B net ≈ −0.67.

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10) Warranty good deal?

Explanation

Expected repair cost = 30, same as warranty.

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11) Bag of marbles expected value?

Explanation

EV = (4/10)*6 + (3/10)*4 = 36/10.

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12) Card draw expected net value?

Explanation

Expected prize ≈ 1.46; net ≈ 0.46.

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13) Investment X expected return?

Explanation

EV = 60 + 25 − 20 = 65.

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14) Phone plan lower expected cost?

Explanation

Plan A = 40; Plan B = 50.

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15) Mystery bag expected net value?

Explanation

EV = 6.5; net = +1.5.

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16) Spinner expected payout?

Explanation

EV = 22/5 = 4.4.

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17) Spinner expected net gain?

Explanation

4.4 − 5 = −0.6.

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18) Spinner new expected net gain?

Explanation

EV payout = 27/5 = 5.4 → net = +0.4.

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19) Game expected value?

Explanation

EV = 3.2 − 1.5 −1 = 0.7.

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20) Insurance deductible choice?

Explanation

Option 1 EV = 100

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What is the expected payout (before subtracting the $3 cost) of one...
What is the expected net gain (payout minus $3 cost) per spin?
Based on expected value, is the game favorable to the player?
If a player spins 100 times, what is the best estimate of the total...
A fair six-sided die... expected value?
Lottery ticket expected net value?
Insurance break-even premium?
Charity raffle expected net value?
Which game has higher expected net value?
Warranty good deal?
Bag of marbles expected value?
Card draw expected net value?
Investment X expected return?
Phone plan lower expected cost?
Mystery bag expected net value?
Spinner expected payout?
Spinner expected net gain?
Spinner new expected net gain?
Game expected value?
Insurance deductible choice?
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