Question

Consider the following game. You roll a six minus sided die and each time you roll a​ 6, you get​ $30. For all other outcomes you pay​ $6. What is the expected value of the​ game

Answer 1

Answer:

$0

Step-by-step explanation:

There are two possible outcomes for this experiment:

-there is a 1 in 6 chance of you winning $30.

-there is a 5 in 6 chance of you losing $30.

The expected value of this game is given by the sum of the products of each outcome by their respective likelihood:

$E(X) = \ 30*\frac{1}{6}- \ 6*\frac{5}{6}\\E(X) = \ 0$

The expected value of this game is $0, which means the game is fair.