You throw 2 dice. the sum is 6 or more, you win $41. If not, you pay me $114. Fine the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Question

Madden

SAT

4 March, 16:22

You throw 2 dice. the sum is 6 or more, you win $41. If not, you pay me $114. Fine the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

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Answers (1)

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Guillermo Osborne · Answer 1

There are ...

1 way to roll 2

2 ways to roll 3

3 ways to roll 4

4 ways to roll 5

hence 10 ways to lose $114 out of the 36 ways the dice can land. For each of the remaining 26 ways the dice can land, you win $41. The expected value of your winnings is

(10/36) * (-114) + (26/36) * (41) = - 31.67 + 29.61 = - 2.06