Consider the following game: Roll a fair 6-sided die. You win if the result is greater than 4; otherwise, you lose. To play, you must pay $4

Question

Consider the following game: Roll a fair 6-sided die. You win if the result is greater than 4; otherwise, you lose. To play, you must pay $4. If you win, you get $8; if you lose, the $4 fee is forfeited. What is the expected value for the amount gained/lost

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Ayla 3 weeks 2021-09-28T19:02:48+00:00 1 Answer 0

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    2021-09-28T19:04:38+00:00

    Answer:

    -$1.33 or lose $1.33

    Step-by-step explanation:

    In this game, there are two possible outcomes.

    – There is a 2 in 6 chance (rolling a 5 or a 6) that you win $8.

    – There is a 4 in 6 chance (rolling a 1, 2, 3 or a 4) that you win nothing.

    Note that for any outcome, you start off paying $4 to play.

    The expected value of this game is:

    E(X) =\frac{2}{6} *\$8+\frac{4}{6}*\$0-\$4\\E(X) = -\$1.33

    You are expected to lose $1.33 per play.

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45:7+7-4:2-5:5*4+35:2 =? ( )