Solve the problem.
-Suppose you pay $3.00 to roll a fair die with the understanding that you will get back $5.00 for rolling a 3 or a 6, nothing otherwise. What is your expected value?
A)$3.00
B)-$1.33
C)-$3.00
D)$5.00

Question

Quizplus · Accepted Answer

The expected value is calculated by multiplying each outcome by its probability and summing these products. Rolling a 3 or a 6 (2 outcomes out of 6) gives you $5, so the expected gain is 2/6 * $5 = $1.67. Since you pay $3 to play, the expected value is $1.67 - $3 = -$1.33.

Solve the Problem. -Suppose You Pay $3.00 to Roll a Fair Die with Fair