Question
Here's mydilemma, I can accept a $1500 bill or play a game ten times. For each roll of the singledie, I win $500 for rolling
Here's mydilemma, I can accept a $1500 bill or play a game ten times. For each roll of the singledie, I win $500 for rolling 1 or2; I win $100 for rolling3; and I lose $300 for rolling4, 5, or 6. Based on the expectedvalue, I should accept the $1500?
1.The statement makes sense makessense because the expected value after ten rolls isnothing dollars, which is less than the value of the current bill.
2. The statement does not make sensebecause the expected value after ten rolls is
nothing dollars, which is greater thanthe value of the current bill.
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