Question
Suppose that you are offered the following deal. You roll a die. If you roll a 1, you win $15. If you roll a 2,
Suppose that you are offered the following "deal". You roll a die. If you roll a 1, you win $15. If you roll a 2, 3, or 4 you win $10. If you roll a 5, or 6, you pay $20.
A. Complete the PDF Table. List the x values from largest to smallest.
x | P(x) |
[ Select ] ["15", "1", "3"] | [ Select ] ["0.5", "0.17", "1"] |
[ Select ] ["2", "4", "3", "10"] | [ Select ] ["0.5", "1", "0.17"] |
[ Select ] ["20", "-20", "5", "6"] | [ Select ] ["0.17", "0.33", "2", "0.5"] |
B. Find the expected value. [ Select ] ["0.95", "-0.19", "1.07", "1.34"]
C. Interpret the expected value. [ Select ] ["If you play many games you will likely win on average very close to this amount.", "You will win this much if you play a game.", "This is the most likely amount of money you will win."]
D. Based on the expected value, should you play this game? [ Select ] ["No, the amount you lose is $20 which is more than any amount that you can win.", "No, this is a gambling game and it is always a bad idea to gamble.", "Yes. The expected value is positive. If you play many games you are very likely to end up winning more money than you lose."]
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