Question

Suppose it costs $35 to roll a pair of dice. You get paid 5 dollars times the sum of the numbers that appear on the dice. What is the expected payoff of the game? Is it a fair game? The expected payoff of the game is

Answer 1

Explanation:

The sum of the numbers rolled on a pair of dice can range from 2 to 12. This means that you are guaranteed to get at least $10, and can get up to $60. You have the highest probability (1/6) of rolling a sum of 7, which would mean getting paid $35, having gained $0. The game is fair because the chances of making or losing a certain amount of money are the same. If you need more help, here is a table of dice pair probibility.