We have been provided with the information about two game with its relevant probabelity as follow
Game 1:
$1 million with probabilty = 1.0
Game 2:
$5 million = .1
$1 million = .89
$0= .01
Now we will find out the figure with the relevant amount as follow
| Game 1 | ||
| Gain | Probabelity | Net Gain |
| (A) | (B) | (A)*(B) |
| 1,000,000 | 1 | 1000000 |
Expected out come of game -1 is $ 1,000,000
| Game 2 | ||
| Gain | Probabelity | Net Gain |
| (A) | (B) | (A)*(B) |
| 5,000,000 | 0.1 | 500000 |
| 1,000,000 | 0.89 | 890000 |
| Total | 1390000 |
Expected out come of game -1 is $ 1,390,000
Conclusion : You should choose game -2 because Expected outcome of game -2 is more then game -1
