Posted by **Sandra** on Friday, November 20, 2009 at 1:38am.

You are on a TV show. You have been asked to either play a dice game five times or accept a $50 bill. The dice game works like this:

If you roll a 1, 2 or 3, you win $46.

If you roll a 4 or 5, you lose $22.

If you roll a 6, you lose $85.

Should you play the game? Use expected values and decision theory to justify your answer. (Round the answer to the nearest cent.)

- Mathematics for Liberal Arts -
**drwls**, Friday, November 20, 2009 at 2:11am
The expected winning per game is

(1/2)*46 - (1/3)*22 - (1/6)*85

If that is positive, play the game

- Mathematics for Liberal Arts -
**Reiny**, Friday, November 20, 2009 at 12:29pm
Take the $50 and quit.

(Each game as outlined by drwls has an expected value of $1.50.

You are playing it 5 times, so the expected return is $7.50.

Your choice was to either accept $50 or play the game)

- Mathematics for Liberal Arts -
**drwls**, Friday, November 20, 2009 at 4:13pm
Reiny is correct. I assumed you were betting your own money. I didn't read all the question.

## Answer This Question

## Related Questions

- Prob - A game is played using three 6-sided dice. You throw these dice one time ...
- Algebra - You are a contestant on a game show and have the chance to win a car ...
- Math - At this year's State Fair, there was a dice rolling game. If you rolled ...
- English - Playing the dice game, have a conversation about what you must do and ...
- Math - A game is played using one dice. If the dice is rolled and shows 1, the ...
- Programming Logic - I need to create a flowchart/psuedocode for a dice game that...
- Finite Math - Bill and Fred are betting on the outcome when two fair dice are ...
- English expression - There is only one die in playing the dice game. They are ...
- durhamtech - want raptor flow chart for rolling a dice five times and the total ...
- Computer Science Java - I have to write program for a dice game and use a ...

More Related Questions