Question: You roll a die. If it comes up a 6, you win $100. If not, you get to roll again. If you get a 6

You roll a die. If it comes up a 6, you win $100. If not, you get to roll again. If you get a 6 the second time, you win $50. If not, you lose.
a) Create a probability model for the amount you win.
b) Find the expected amount you'll win.
c) What would you be willing to pay to play this game?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a b Eamount won c In the long run the expected payoff oft... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Statistics Questions!