Question

A game uses a single 6-sided die. To play the game, the die is rolled one time, with the following results: Even number = lose $51 or 3 = win $15 = win $8What is the expected value of the game?

Answer 1

Expected value of the game = -5/6 dollars.

Step-by-step explanation

Given:

Even number = lose $5

1 or 3 = win $1

5 = win $8

Let's first form the table.

TABLE

Outcome: 1 2 3 4 5 6

Money: +$1 -$5 +$1 -$5 +$8 -$5

Probability for each outcome = 1/6

Expected value of the game = 1/6 ( $1 - $5 + $1 - $5 +$ 8 - $5)

= -5/6 dollars.