Jonah’s Restaurant reports net income of $20,000 during the year 2015. It distributes a dividend of $6,000 to its shareholders.
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Answer:
The expected value of playing the game once is -$0.04
Step-by-step explanation:
Consider the provided information.
If the total of the two dice is 2, 3, 4, 5, or 6 then the person gets $4 (the $2 wager and $2 winnings).
The total number of outcomes are:
(1,1) (1,2) (1,3) (1,4) (1,5) (1,6)
(2,1) (2,2) (2,3) (2,4) (2,5) (2,6)
(3,1) (3,2) (3,3) (3,4) (3,5) (3,6)
(4,1) (4,2) (4,3) (4,4) (4,5) (4,6)
(5,1) (5,2) (5,3) (5,4) (5,5) (5,6)
(6,1) (6,2) (6,3) (6,4) (6,5) (6,6)
The probability of getting sum 2 is
The probability of getting sum 3 is
The probability of getting sum 4 is
The probability of getting sum 5 is
The probability of getting sum 6 is
Similarly, the probability of getting sum 8, 9, 10, 11, or 12 is:
The probability of P(7) is
If the total of the two dice is 2, 3, 4, 5, or 6 then the person gets $4.
If the total of the two dice is 8, 9, 10, 11, or 12 then the person gets nothing (loses $2).
If the total of the two dice is 7, the person gets $0.75 back (loses $0.25).
Thus the required expected value is:
Hence, the expected value of playing the game once is -$0.04