A game gives a prize according to the following rule. A bag contains tokens labelled with values £1, £2 and £5. The probabilities of drawing each are proportional to 1, 2 and 1 respectively. A player draws one token at random and receives that amount. The player may then choose to redraw once: if they redraw they must accept the second token. (a) Find the probability of drawing each value on a single draw. (b) Determine the expected winning if the player adopts the strategy: keep the first draw only if it is at least £2; otherwise redraw. Show all working and give the expected value to the nearest pence. (c) Is this strategy better than always keeping the first draw? Justify with a comparison.
(a)Find the probability of drawing each value on a single draw.(2)
(b)Determine the expected winning with the strategy: keep first draw only if it is at least £2; otherwise redraw. Show working and give expected value to nearest pence.(5)
(c)Is this strategy better than always keeping the first draw? Justify with a comparison.(3)
(Total for Question 8 is 10 marks)