Question

A game of chance involves rolling a 17-sided die once. If a number from 1 to 3 comes up, you win 4 dollars. If the number 4 or 5 comes up, you win 7 dollars. If any other number comes up, you lose. If it costs 4 dollars to play, what is your expected net winnings?

Answer 1

-$2.47

Explanation:

Your expected winnings are the sum of each outcome times its probability.

E = (3/17) (4) + (2/17) (7) + (12/17) (0)

E = 1.53

It costs $4 to play, so the net expected winnings is:

E − 4 = -2.47