SOLUTION: If you play a game that consists of rolling a single fair die and pays off at $3.00 for a 6 $2.00 for a 5 $1.00 for a 4 And no payoff otherwise, what is a fair price to pay to

Algebra ->  Probability-and-statistics -> SOLUTION: If you play a game that consists of rolling a single fair die and pays off at $3.00 for a 6 $2.00 for a 5 $1.00 for a 4 And no payoff otherwise, what is a fair price to pay to       Log On


   

Question 368498: If you play a game that consists of rolling a single fair die and pays off at
$3.00 for a 6
$2.00 for a 5
$1.00 for a 4
And no payoff otherwise, what is a fair price to pay to play this game.
I got the expected winnings part of the question but, I am having trouble figuring out the fair price to play.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


There is nothing to figure out. The fair price to play IS the expected winnings. That way, over time both the game operator and the player break even.

Since you can't wager a half-cent, you should make the price to play $1.99 for two plays.

John

My calculator said it, I believe it, that settles it
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