Question

You are playing a game in which a single die is rolled. if you roll a 2 or a 5, you win $36, otherwise you lose $36. What is the expected value of this game?

Answer 1

In rolling a single die, there are 6 possible outcomes. To win, there are two possible outcome making the probability equal to 2/6. Moreover to loss, there are 4 possible outcomes, making the probability equal to 4/6.Calculating the cost,
(2/6)($36) - (4/6)($36) = -12
Thus, the expected value of the game is $-12.