Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
A) -$6
B) $0
C) $6
D) $30

Question

Quizplus · Accepted Answer

The expected value (EV) of the game can be calculated by multiplying each outcome by its probability and summing these products. The probability of rolling a 6 is 1/6, and the probability of rolling any other number (1-5) is 5/6. The expected value calculation is: EV = (1/6)*$30 + (5/6)*(-$6) = $5 - $5 = $0.

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