Answer:
1. What is the expected value of the game to the player?
Expected value= -$0.47368
2. If you played the game 1000 times, how much would you expect to lose?
Expected value= -$473.68
Step-by-step explanation:
1. What is the expected value of the game to the player?
Expected value can tell how much you will gain/lose every time you do the game. To find the expected value you need to multiply every value with its chance to occur. There are two types of events here, winning and losing. You have 1/38 chance of winning $315 and 37/38 chance of losing $9.
The expected value will be:
expected value= 1/38 * $315 + 37/38*(-$9) = $8.2894 - $8.7631
expected value= -$0.47368
You are expected to lose $0.47368 every time you play
2. If you played the game 1000 times, how much would you expect to lose?
Expected value calculated for each roll. If you want to know how much you gain/lose by multiple rolls, you just need to multiply the expected value with the number of rolls. The game has negative expected value so you are expected to lose money instead of gaining money. The money you expected to lose will be:
number of roll * expected value
1000 timer * -$0.47368/time= -$473.68
You are expected to lose $473.68 if you play the game 1000 times.
