Problema Solution
You play a gambling game with a friend in which you roll a die. If a 1 or 2 comes up, you win $8. Otherwise you lose $3. What is your expected value for this game? Round your answer to the nearest cent.
The expected value is $
Answer provided by our tutors
Expected value of the outcome is defined as the sum of the products of the outcome's values and their respective probabilities:
E = 8*(2/6) - 3*(4/6)
E = $4.67
The expected value is $4.67.