Question

Suppose you pay $3.00 to roll a fair die with the understanding that you will get back $5.00 for rolling a 1 or a 6, nothing otherwise. What is your expected value?

A. $5.00

B. –$1.33

C. $3.00

D. –$3.00

Answer 1

I would say D

Explanation:

I say D because there is only a 2/6 chance of getting the 5 bucks so it's more likely to get no money back and lose the 3 bucks