Answer:
You lose $0.833 while Rick gains $0.833, and so Rick is not Loco
Step-by-step explanation:
There are six numbers on a dice. Thus, probability of rolling exactly one number = 1/6
Probability of rolling two is 2/6.
Rolling a 1 pays $25, and probability = 1/6
Rolling a 2 pays $5,and probability = 1/6
Rolling a 3 pays $0, and probability = 1/6
Rolling a 4 or 5 pays -$10, and probability = 2/6
Rolling a 6 pays -$15, and probability = 1/6
Thus,lets calculate the expected value;
EV = (25 × 1/6) + (5 × 1/6) + (0 × 1/6) + (-10 × 2/6) + (-15 × 1/6)
EV = - $0.833
This means you lose $0.833 while Rick gains $0.833, and so Rick is not Loco.
