Saturday, July 16, 2011

Help me out to finish this math question?

"Fair price" is new terminology to me also, but I guess it must mean "what is the average price per competitor?" So, given that each competitor has a 1/60 chance of winning $50, the mathematical expectation is $50 / 60 = 83 cents. Subtract take from the $20 entry fee, and you get a fair price of $ 19.17.

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