SOLUTION: In a game, $3 is bet on the roll of a 7 sided die. If 3, 4, 5, 6 is rolled, the player wins $2. a. What is the expected winnings from the game? b. Is the game fair? Explain why o

Algebra ->  Probability-and-statistics -> SOLUTION: In a game, $3 is bet on the roll of a 7 sided die. If 3, 4, 5, 6 is rolled, the player wins $2. a. What is the expected winnings from the game? b. Is the game fair? Explain why o      Log On


   

Question 719361: In a game, $3 is bet on the roll of a 7 sided die. If 3, 4, 5, 6 is rolled, the player wins $2.
a. What is the expected winnings from the game?
b. Is the game fair? Explain why or why not.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
In a game, $3 is bet on the roll of a 7 sided die.
If 3, 4, 5, 6 is rolled, the player wins $2.
a. What is the expected winnings from the game?
Random # values: -3.......2
Probabilities::: 3/7......4/7
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Expected winnings: (-9 + 8)/7 = -1/7 dollars
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b. Is the game fair? Explain why or why not.
Not fair as you can expect to lose 1/7 = $0.1428 cents each time you play.
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Cheers,
Stan H.