P(rolling 1) = 1/6, gain = 300 -50 = 250
P(rolling 3 or 6) = 2/6 ; gain = 150 - 50 = 100
P(rolling 2,4 or 5) = 3/6 ; loss = -50
Rolling | Gain/ loss | P(x) | x* P(x) |
1 | 250 | 0.167 | 41.667 |
3 or 6 | 100 | 0.333 | 33.333 |
2,4 or 5 | -50 | 0.50 | -25 |
Total | Total | 1.00 | 50.000 |
E(X) = X * P(X) = (250 * 0.167) + (100 * 0.333) + (-50 * 0.50) = 50
a. Expected value for the game = $ 50
b. This would be a good game to play as the expected value of winning is $50. So there are chances of winning and receiving money.
Get Answers For Free
Most questions answered within 1 hours.