Question 102626: Here is my probability question...In a dice game, you will roll three dice: a red one, a green one, and a blue one. You will win , in dollars, 3 times the number on the red die, plus 2 times the number on the green die, minus the number on the blue die. What are the expected value and standard deviation of your winnings? What would be a fair price to pay to play this game?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! In a dice game, you will roll three dice: a red one, a green one, and a blue one. You will win , in dollars, 3 times the number on the red die, plus 2 times the number on the green die, minus the number on the blue die. What are the expected value and standard deviation of your winnings? What would be a fair price to pay to play this game?
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There are 6^3 = 216 possible outcomes for each roll of the dice.
You would have to list all 216 and the pay off for each. Some of
the payoffs will be the same for different combinations of red,green,
and blue. You have figure the probability of each payoff amount;multiply
the payoff by the probability; and add the results. That would be the
expected winnings for the game. Whatever that is is what you should
pay to play the game.
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Cheers,
Stan H.
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