Question

A casino introduces a new game. In this game you roll a die and the upper most number is recorded. If you roll an odd you lose. If you roll a 2 you win $1, if you roll a 4 you win $5 and if you roll a 6 you win $10.

A) If the game costs $5 to play what is the expected gain/loss of the game?

B) Instead of $5 to play, what should the cost to play be to make this a fair game?

Answer 1

classmate - Date Page Let y be a Random variable Representing Number on uppermost number when Rolling - a die. Prob [odd number oma die] = 3 - 5 Prob [ Number 2] = = Prob [ Number 4] Prob [Number 6] = 1 ALE xpected gain I Loss =_Expected - Cost of - wim Game E xbected wim 2 EX4Q) -------- ------ wimming Prob exmount (0) (+ (1) (31) + s(+ 10 (5) *+&+ 10 = V - $:67 6 Expected win / Loss = $2.67 - $5 = - 2:33 LNegative Represents Loss] Expected Loss: $2:33 Hence