Question

If a gambler rolls two dice and gets a sum of 10, he wins $10, and if he gets a sum of three, he wins $20. the cost to play the game is $5. what is the expectation of this game?

a. $3.06
b. -$2.78
c. -$3.06
d. $2.78

Answer 1

Chance to win $10 is 3/36 Chance to win $20 is 2/36 Chance to lose is 31/36 So if cost of play is $5: ((3*5) + (2*15) - (5*31))/36 = -3.06 C. $-3.06