Question 183061: bob and fred play the following game. Bob rolls a single die. if the result is the number 1,2,3,4,5 bob must pay fred the number of dollars indicated by the number rolled. if a 6 is rolled fred must pay bob $57 dollars.
find freds expectation?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! bob and fred play the following game. Bob rolls a single die. if the result is the number 1,2,3,4,5 bob must pay fred the number of dollars indicated by the number rolled. if a 6 is rolled fred must pay bob $57 dollars.
find freds expectation?
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Random variable values: 1,2,3,4,5,-57
corresponding probabilities are each 1/6
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Expected "winnings": (1/6)(1+2+3+4+5-57) = (1/6)(-42) = -$7.00
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Cheers,
Stan H.
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