CPhill got this answer. I am confused which is correct.
Option A.....possible outcomes
(1, 1) (2, 2)
(1, 2) ( 2,5)
(2, 1) (5,2)
(1, 5) (5, 5)
(5, 1)
Expected vlalue = (3/9)(8) - (6/9)(2) = 8/3 - 4/3 ≈ $1.33
Option B
Expected value (50/((1/8) - (1)(7/8) ≈ $5.38
Ptiob B is better by $ [ 5.38 - 1.33] = $4.05