Question 249623: If a gambler rolls two dice and gets a sum of 10, he wins 10 dollars and if he gets a sum of 3, he wins 20 dollars. The cost to play is 5 dollars. What is the expected value of the game?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! If a gambler rolls two dice and gets a sum of 10, he wins 10 dollars and if he gets a sum of 3, he wins 20 dollars. The cost to play is 5 dollars. What is the expected value of the game?
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sum of 10: 55,64,46: 3/36
sum of 3: 12,21: 2/26
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Random number values (winner's gains): -5, 5, 15
Corresponding probabilities are: 31/36 , 3/36 , 2/36
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E(x) = -5(31/36)+5(2/36)+15(2/36) = (-155+10+30)/36 = -115/36 = -$3.19
The gambler can expect to lose $3.19 each time he plays the game.
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Cheers,
Stan H.
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