Answer:
Expected Value of $2:
Expected Value of $2:
Win, 0.3333 x $3 = $1
Plus
Loss, 0.6667 x -$2 = -$1.33
Expected value = ($0.33)
Step-by-step explanation:
Probability of a win = 2/6 = 0.3333
Probability of a loss = 4/6 = 0.6667
Expected Value of $2:
Win, 0.3333 x $3 = $1
Plus
Loss, 0.6667 x -$2 = -$1.33
Expected value = ($0.33)
The casino game player's expected value is computed by multiplying each of the possible outcomes by the likelihood (probability) of each outcome and then adding up the values. The sum of the values is the expected value, which amounts to a loss of $0.33.
