Another statistics problem.?

Question

Suppose you want to play a carnival game that costs 4 dollars each time you play. If you win, you get $100. The probability of winning is 3/100. What is the expected value of the amount the carnival stands to gain?

Answer 1

$ 1 per game. To you, the expected value is $100*3/100 or $3. Of course, you hope to win fast before you shell out a bundle.