SOLUTION: Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $8. If you roll a 4 or 5, you win $3. Otherwise, you pay $4.

Algebra ->  Probability-and-statistics -> SOLUTION: Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $8. If you roll a 4 or 5, you win $3. Otherwise, you pay $4.       Log On


   

Question 1203902: Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $8. If you roll a 4 or 5, you win $3. Otherwise, you pay $4.
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!


X = profit.......P%28X%29
----------------------
+$8.................1%2F6
+$3.................2%2F6+=+1%2F3
-$4.................3%2F6+=+1%2F2

Expected profit =$+8%281%2F6%29+%2B+3%281%2F3%29++-4%281%2F2%29+=+1%2F3=0.333