Question
Suppose you play a game in which a friend offers to play in which you roll a fair die. If the outcome of the die
- Suppose you play a game in which a friend offers to play in which you roll a fair die. If the outcome of the die is a "1", he will give you $7 and if the outcome is "6", he will give you $4. But if the outcome is any other number, you owe him $3.
Let X = Amount of money you gain in one round of this game (loss counted as negative).
a. Fill out the probability distribution function below.
Outcome | x ($) | P(x): keep as fraction |
"1" | ||
"6" | ||
"2", "3", "4" or "5" |
Find the expected value (mean) forX, the amount of money you gain in one round of this game, on average. Since it's measured in dollars, round your final answer to 2 decimal places.
= E (x) = 7() + 4() +(-3)(4/6) = 7/6 + 2/3 - 2 = - 0.17 dollars (not sure)
c. Find the amount of moneyyour friend would gain in one round of this game, on average. Explain.
This is the part I'm confused with.
Step by Step Solution
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Step: 1
Solutions Step 1 a The probability distribution function Outcome x Px 1 7 01667 6 4 01667 234or 5 3 ...Get Instant Access to Expert-Tailored Solutions
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