Question

A game Is played using one die. If the die is rolled and shows 3, the player wins $15. M the die shows any number other than 3, the player wins nothing. Complete parts (a) through (0)

a. If there is a charge of $3 to play the game, what is the game's expected value?

Answer 1

0

Explanation:

Expected Value = (Probability of winning) x (Amount won) + (Probability of losing) x (Amount lost)

In this case, the probability of winning is 1/6 (since there is only one way to roll a 3 out of six possible outcomes), and the probability of losing is 5/6 (since there are five other outcomes that do not result in a win).

The amount won is $15, and the amount lost (i.e., the cost of playing the game) is $3.

Therefore, the expected value is:

Expected Value = (1/6) x $15 + (5/6) x (-$3)

Expected Value = $2.50 - $2.50

Expected Value = $0