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Standard Deviation

Question 13 • EAP-Algebra Functions and Data Analysis B CR

For what expected value is a game fair?

Answer
A
E(X) < 0
B
E(X) = 0
C
E(X) = 1
D
E(X) > 0

Explanation

A game is fair when the player's expected net gain is zero. This means that, over many plays, winnings and costs balance out on average, so there is no expected profit or loss. Therefore, the correct choice is E(X) = 0.

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