Question

home / study / math / statistics and probability / statistics and probability questions and answers / we are going to play a game of chance. we will roll a die (half of a pair of dice) and if it ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: We are going to play a game of chance. We will roll a die (half of a pair of dice) and if it come... We are going to play a game of chance. We will roll a die (half of a pair of dice) and if it comes up with one or two spots showing, you win and I will pay you $1.50. If it comes up with three, four, five, or six spots showing, you lose and you will pay me $1.00. So, the probability that you will win is 1/3 and the probability you will lose is 2/3. What is the expected value of this game for you?

Answer 1

Event                    Value for you (Random Variable X)    Probability (P) of X                  XP

Die spot:1,2                            1.50                                 1/3                                  0.50

Die spot 3,4,5,6                        - 1.00                              2/3                                - 0.67

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Expected value                                                                                          = - 0.17

So,

Answer is:

- 0.17