Answer:
The classification of that same given problem is outlined in the following portion on the clarification.
Step-by-step explanation:
⇒ [tex]E[x]=\Sigma_{x=0}^{x} \ x \ f(x)[/tex]
On putting the values, we get
⇒ [tex]=0\times \frac{3}{4}+225\times \frac{1}{4} -40\times 1[/tex]
⇒ [tex]=\frac{225}{4}-40[/tex]
On taking L.C.M, we get
⇒ [tex]=\frac{225-160}{4}[/tex]
⇒ [tex]=\frac{65}{4}[/tex]
⇒ [tex]=16.25[/tex]
1...
Whether she wins she would receive $225 with even a 1/4 chance, then she will lose and maybe get $0 with such a 3/4 chance although if she takes a gamble anyway though she will either have to compensate $40 wp 1.
2...
She seems to want the capital to benefit or win.