Problem #PRU-65785

Problems Probability and statistics Probability theory Discrete distribution Algebra Mean values

Problem

A ticket for a train costs 50 pence, and the penalty for a ticketless trip is 450 pence. If the free rider is discovered by the controller, he pays both the penalty and the ticket price. It is known that the controller finds the free rider on average once out of every 10 trips. The free rider got acquainted with the basics of probability theory and decided to adhere to a strategy that gives the mathematical expectation of spending the smallest possible. How should he act: buy a ticket every time, never buy one, or throw a coin to determine whether he should buy a ticket or not?