SOLUTION: Here's my dilemma, I can accept a $ 1500 bill or play a game ten times. For each roll of the single die, I win $700 for rolling 1 or 2; I win $400 for rolling

Question 1137288: Here's my dilemma, I can accept a $ 1500 bill or play a game ten times. For each roll of the single die, I win $700 for rolling 1 or 2; I win $400 for rolling 3; and I lose $600 for rolling 4, 5, or 6. Based on the expected value, I should accept the $1500 bill.
A.
The statement does not make sense because the expected value after ten rolls is ____dollars, which is greater than the value of the current bill.
B.The statement makes sense because the expected value after ten rolls is ___ dollars, which is less than the value of the current bill.
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
For a fair die, the Probability(P) of rolling a number is 1/6
:
P (rolling 1 or 2) = 1/6 + 1/6 = 2/6 = 1/3
:
P (rolling a 3) = 1/6
:
P (rolling 4 or 5 or 6) = 3/6 = 1/2
:
Expected value on 1 roll of die is 700(1/3) +400(1/6) -600(1/2) = 0
:
Expected value is linear so if you roll the die 10 times, expected value is 0 * 10 = 0
:
Answer is B
:

RELATED QUESTIONS
Here's my dilemma, I can accept a $1000 bill or play a game ten times. For each (answered by Edwin McCravy,ikleyn)

A classmate offers a game for you to play. You roll a single six-sided die, and if the... (answered by ikleyn)

please help! i've done several simpler ones on my own but i am stuck on this one. A... (answered by stanbon)

Could really use some help on a problem, can someone assist? You play a game where a... (answered by lynnlo)

Here is my probability question...In a dice game, you will roll three dice: a red one, a... (answered by stanbon)

�Craps� is a game where two fair die are rolled and the sum of the uppermost faces is... (answered by KMST)

Cost to play the game is $3.00 You will roll a single die. If you roll a 5 or a 6 you... (answered by ikleyn,Boreal)

there is a game I play There are 6 soccer games. each game has a win draw win result. So... (answered by sudhanshu_kmr)

A game uses a single 6-sided die. To play the game, the die is rolled one time, with the... (answered by ikleyn)

SOLUTION: Here's my​ dilemma, I can accept a ​$ 1500 bill or play a game ten times. For each roll of the single​ die, I win ​$700 for rolling 1 or​ 2; I win ​$400 for rolling​

SOLUTION: Here's my dilemma, I can accept a $ 1500 bill or play a game ten times. For each roll of the single die, I win $700 for rolling 1 or 2; I win $400 for rolling