Question

You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $8. Otherwise you lose $2. What is your expected value for this game? ​

Answer 1

you expect to win on average $1.33 per round

Explanation:

The expected value is the sum of products of probability and value:

2/6×$8 + 4/6×(-$2) = $8/3 - 4/3 = $4/3 ≈ $1.33