this is a relatively simple question but my book's answer is giving a different answer.
Question: Tickets in a game of chance can be purchased for 2 dollars. Each ticket has a 30% chance of winning 2 dollars, a 10% chance of winning $20, and otherwise loses. How much are you expected to win or lose if you play the game 100 times?
My answer: E(X) = -2*60 + 18*10 = $60; the book has 100 dollars instead.
Who is correct?
Thanks
Expectation of one ticket $Y$ is $$ E[Y] = 0.3 \cdot 2 + 0.1 \cdot20 - 2 = 0.6 $$ Then $E[100Y] = 100 E[Y]= 60$