SOLUTION: suppose you pay $2.00 to roll a fair die with the understanding that you will get back $4.00 for rolling a 2 or a 1, nothing otherwise. what is your expected net winnings?

Question 682438: suppose you pay $2.00 to roll a fair die with the understanding that you will get back $4.00 for rolling a 2 or a 1, nothing otherwise. what is your expected net winnings?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
suppose you pay $2.00 to roll a fair die with the understanding that you will get back $4.00 for rolling a 2 or a 1, nothing otherwise. what is your expected net winnings?
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Random "winning" values:::: 2 ::::::: -2
Probabilities:::::::::::::: 2/6 ::::: 4/6
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Expected winnings = (2*2 + 4*-2)/6 = -4/6 = -67 cents
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Cheers,
Stan H.
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