You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $8. Otherwise you lose $2. What is your expected value for this game?

Question

Mathematics

Wesley Manning

11 February, 04:14

You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $8. Otherwise you lose $2. What is your expected value for this game?

+1

Answers (1)

Know the Answer?

Maximillian Mcbride · Answer 1

you expect to win on average $1.33 per round

Step-by-step explanation:

The expected value is the sum of products of probability and value:

2/6*$8 + 4/6 * (-$2) = $8/3 - 4/3 = $4/3 ≈ $1.33