Homework Help: Mathematics for Liberal Arts

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 - 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

English - Playing the dice game, have a conversation about what you must do and ...
Liberal Arts? - I'm in middle school, my sister, (Senior in hs) keeps ...
Algebra - You are a contestant on a game show and have the chance to win a car ...
Liberal Arts Mathematics - Could you show me the steps on how to figure out the...
Mathematics for Liberal Arts - Each round of the game costs $1 to play. A round ...
Math - On a TV game show, the contestant is asked to select a door and then is ...
Math - On a TV game show, the contestant is asked to select a door and then is ...
MATH 157 - On a TV game show, the contestant is asked to select a door and then ...
MATH Prob. - On a TV game show, the contestant is asked to select a door and ...
Computer Science Java - I have to write program for a dice game and use a ...

For Further Reading

First Name:
School Subject:
Answer: