jenkinsfamily1983 jenkinsfamily1983

21-10-2018
Mathematics

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Suppose you pay $3.00 to roll a fair die with the understanding that you will get back $9.00 for rolling a 1 or a 6, nothing otherwise. What is your expected value?

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wegnerkolmp2741o wegnerkolmp2741o

21-10-2018

Expected winnings are earnings minus cost

Earnings:

9* 1/6 + 0 * 1/6 + 0*1/6 + 0*1/6 + 0 * 1/6 + 9 * 1/6

9/6+9/6 = 18/6 = 3

Winnings:

earnings - cost =3-3 = 0

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