An article from The San Jose Mercury News was concerned with the racial mix of the 1500 students at Prospect High School in Saratoga, CA. The table summarizes the results. (Male and female values are approximate.) Suppose one Prospect High School student is randomly selected.

A “friend” offers you the following “deal.” For a $10 fee, you may pick an envelope from a box containing 100 seemingly identical envelopes. However, each envelope contains a coupon for a free gift.

• 10 of the coupons are for a free gift worth $6.

• 80 of the coupons are for a free gift worth $8.

• 6 of the coupons are for a free gift worth $12.

• 4 of the coupons are for a free gift worth $40.

Based upon the financial gain or loss over the long run, should you play the game?

A. Yes, I expect to come out ahead in money.

B. No, I expect to come out behind in money.

C. It doesn’t matter. I expect to break even.

 

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