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8 August, 18:13

A pair of fair dice is rolled once. suppose that you lose $ 8 if the dice sum to 3 and win $ 13 if the dice sum to 10 or 12. how much should you win or lose if any other number turns up in order for the game to be fair?

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  1. 8 August, 18:33
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    You should lose $1.20 for any other outcome to make it a fair game.

    There are 2 ways to get a sum of 3 out of 36 outcomes; this probability is 2/36.

    There are 4 ways to get a sum of 10 or 12 out of 36 outcomes; this probability is 4/36.

    There are 36 - (2+4) = 36-6 = 30 other outcomes out of 36; this probability is 30/36.

    We lose $8 if we get a sum of 3; this expected value is - 8 (2/36) = - 16/36.

    We win $13 if we get a sum of 10 or 12; this expected value is 13 (4/36) = 52/36.

    Using x as the amount we win or lose for the other outcomes, the expected value is 30x/36.

    In order to be a fair game, the amount we win and/or lose should come outto ($0 total.

    Together we have the equation

    -16/36+52/36+30x/36 = 0

    Adding the fractions, we have

    (-16+52+30x) / 36 = 0

    (30x+36) / 36 = 0

    Multiplying both sides by 36,

    30x+36=0*36

    30x+36=0

    Subtracting 36 from both sides,

    30x+36-36=0-36

    30x=-36

    Dividing both sides by 30,

    30x/30 = - 36/30

    x=-36/30 = - 1.2

    Thus we should lose $1.20 for any other roll.
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