Question

Consider the following game. You roll a six minus sided die and each time you roll a​ 6, you get​ $30. For all other outcomes you pay​ $6. What is the expected value of the​ game

Answer 1

$0

Explanation:

There are two possible outcomes for this experiment:

-there is a 1 in 6 chance of you winning $30.

-there is a 5 in 6 chance of you losing $30.

The expected value of this game is given by the sum of the products of each outcome by their respective likelihood:

`E(X) = \$30*(1)/(6)- \$6*(5)/(6)\\E(X) = \$0`

The expected value of this game is $0, which means the game is fair.