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Suppose you play a betting game with a friend. You are to roll two fair 6-sided...

Suppose you play a betting game with a friend. You are to roll two fair 6-sided dice. He says that if you roll a 7 or 11, he will pay you $100. However, if you roll anything else, you owe him $20. Let x denote the discrete random variable that represents the amount you are paid, i.e., x = $100, and the amount you have to pay, i.e., x = −$20.

  1. Create a table for the probability distribution of x.

  2. Use this table to calculate the expected value.

  3. Write an interpretation of this value.

  4. Use this interpretation together with the Law of Large Numbers to explain if this game is better for you or him in the long run.

Math   Statistics-And-Probability   
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