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Imagine a casino game where I roll a single dice. It costs nothing to enter this game. The payoff to participants is as follows: .
Imagine a casino game where I roll a single dice. It costs nothing to enter this game. The payoff to participants is as follows: . If the roll of the dice ends up on number 1 or 2 the payoff is $2000, If the roll of the dice ends up on number "3' or '4", the payoff is $7000 . if the roll of the dice ends up on number"5" or "6. the payoff is $10,000. Assume that this is a "fair" dice in other words, there is an equal probability of the roll being a 1.2.3.4.5 or 6. Obviously, participants in this game will get some kind of payoff. It is just uncertain how big the payoff will be it comes down to the roll of a dice, Assume that you are a risk neutral person and were offered the opportunity to avoid playing this risky game and instead simply receive a fixed certain payoff What is the smallest amount of certain payoff you would be prepared to take to avoid playing this risky game? Do not enter a dollar sign ($) in your
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