Consider the following game. You pay me an entry fee of x dollars, then I roll a fair die. If the die shows a number less than 3, I pay you nothing; if the die shows a 3 or 4, I give you back your entry fee of x dollars; if the die shows a 5, I will pay you $1; and if the die shows a 6, I pay you $3. What value of x makes the game fair (in terms of expected value) for both of us?
A) $2
B) $4
C) $1
D) $0.75
E) $0.50

Question

Quizplus · Accepted Answer

The Answer of Consider the following game. You pay me an entry fee of x dollars, then I roll a fair die. If the die shows a number less than 3, I pay you nothing; if the die shows a 3 or 4, I give you back your entry fee of x dollars; if the die shows a 5, I will pay you $1; and if the die shows a 6, I pay you $3. What value of x makes the game fair (in terms of expected value) for both of us?
A) $2
B) $4
C) $1
D) $0.75
E) $0.50

Consider the Following Game