please help!! pretty please!!
i need to know how to this problem ASAP!
suppose you pay $1.00 to roll a fair die with the understanding that you will get back $3.00 for rolling a 5 or a 1, nothing otherwise. what is your expected value?
You have 2/6 (1/3) chance of winning $3 and 4/6 (2/3) chance of losing $1.
E = (-$1 * 2/3) + ($3 *1/3) = ?
Sure, I can help you with that! To find the expected value in this scenario, you need to multiply each outcome by its probability and sum them up.
Let's first determine the probabilities of rolling a 5 or a 1 on a fair die. Since there are six equally likely outcomes (numbers 1 to 6), the probability of rolling a 5 or a 1 is 2/6, which simplifies to 1/3.
Now, let's consider the rewards. If you roll a 5 or a 1, you receive $3.00. Otherwise, you receive nothing, so the reward is $0.00.
To calculate the expected value, multiply each outcome by its probability and sum them up:
Expected Value = (Probability of 5 or 1) * (Reward for 5 or 1) + (Probability of other outcomes) * (Reward for other outcomes)
Expected Value = (1/3 * $3.00) + (2/3 * $0.00)
Calculating this expression will give us the answer to your question.