## Consider the following game: Roll a fair 6-sided die. You win if the result is greater than 4; otherwise, you lose. To play, you must pay $4

Question

Consider the following game: Roll a fair 6-sided die. You win if the result is greater than 4; otherwise, you lose. To play, you must pay $4. If you win, you get $8; if you lose, the $4 fee is forfeited. What is the expected value for the amount gained/lost

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2021-09-28T19:02:48+00:00
2021-09-28T19:02:48+00:00 1 Answer
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## Answers ( )

Answer:-$1.33 or lose $1.33

Step-by-step explanation:In this game, there are two possible outcomes.

– There is a 2 in 6 chance (rolling a 5 or a 6) that you win $8.– There is a 4 in 6 chance (rolling a 1, 2, 3 or a 4) that you win nothing.Note that for any outcome,

you start off paying $4 to play.The expected value of this game is:

You are expected to lose $1.33 per play.