Question

In a game involving a pair of fair number cubes, you win 5/9 and your friend wins 4/9. Each time you win, you get $0.90, and each time your friend wins, they get $1.17. Who earns more money in the long run?

Answer 1

Your friend earns more money in the long run with an expected value of $0.65 per game.

Step-by-step explanation:

To determine who earns more money in the long run, we can calculate the expected value for both you and your friend.

The expected value is found by multiplying each outcome by its respective probability and summing them up.

For you, the expected value is (5/9) * $0.90 + (4/9) * $0 = $0.50.

For your friend, the expected value is (4/9) * $1.17 + (5/9) * $0 = $0.65.

Therefore, your friend earns more money in the long run with an expected value of $0.65 per game.