Suppose you pay $2.00 to roll a fair die with the understanding that you will get back $$\$ 4.00$$ for rolling a 6 or a 3,nothing otherwise.What is the expected amount you win?
A)$2.00
B)-$0.67
C)$4.00
D)-$2.00
E)$0.00

Question

Quizplus · Accepted Answer

The probability of rolling a 6 or a 3 is 2/6 = 1/3. Therefore, the probability of not rolling a 6 or a 3 is 2/3. 
The expected amount won is: 
(11/36)*$11 - (25/36)*$2 - $2 = -$0.67 
Therefore, the best choice is B as the expected value is negative, meaning you can expect to lose money in the long run.

Suppose You Pay $2 $4.00\$ 4.00$4.00 For Rolling a 6 or a 3,nothing Otherwise

Suppose You Pay $2 $\$ 4.00$ For Rolling a 6 or a 3,nothing Otherwise