Question

You roll a 4-sided die, numbered 1-4. Your payoffs for this game are:what is your expected profit from this game? express your answer to the nearest cent,

Answer 1

To calculate the expected profit from this game, we multiply each payoff by its probability and sum up the results. The expected profit from this game is $2.25.

Step-by-step explanation:

To calculate the expected profit from this game, we need to find the average value of the payoffs and their corresponding probabilities.

The die has 4 sides, numbered 1-4. The payoffs are $10 for rolling a 1, $5 for rolling a 2 or 3, and -$6 for rolling a 4. Each outcome has a probability of 1/4 since the die is fair.

We calculate the expected profit by multiplying each payoff by its probability, and then summing up the results:

Expected profit = (10 * 1/4) + (5 * 1/4) + (-6 * 1/4) = $2.25

Therefore, the expected profit from this game is $2.25, rounded to the nearest cent.