1. You are at a school carnival. There is a game that allows you to pay $2 for a chance to put a ring around an old-time milk jug. There are 10 milk jugs: 2 pink ones, 3 green ones, and 5 blue ones. If you ring one with a pink rim, you win $10. If you ring one with a green rim, you win $5. If you ring one with a blue rim, you win nothing. You are guaranteed to land on a rim. What is your expected payoff? a. - $3.50

b. - $1.25

c. $3.00

d. $1.50