Expected Value
You decide to play either one of the following games and each game costs $1 to play.
Game 1: A spinner with 3 numbers on it, 0, 1, 2 is spun so that there is a 30% chance the spinner stops at 0, a 20% chance the spinner stops at 2. You get back the same amount, in dollars as the spinner stops at.
Game 2: A different spinner with 3 numbers on it, 0, 1, 2 is spun so that there is a 5% chance the spinner stops at 0, 70% chance the spinner stops at 1 and 25% chance the spinner stops at 2. Again, you get back the same amount that the spinner stops at.
Which game has the largest standard deviation in returns?
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