Suppose you play a game in which a friend offers to play in which you roll a
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Question:
- Suppose you play a game in which a friend offers to play in which you roll a fair die. If the outcome of the die is a "1", he will give you $7 and if the outcome is "6", he will give you $4. But if the outcome is any other number, you owe him $3.
Let X = Amount of money you gain in one round of this game (loss counted as negative).
a. Fill out the probability distribution function below.
Outcome | x ($) | P(x): keep as fraction |
"1" | ||
"6" | ||
"2", "3", "4" or "5" |
Find the expected value (mean) forX, the amount of money you gain in one round of this game, on average. Since it's measured in dollars, round your final answer to 2 decimal places.
= E (x) = 7() + 4() +(-3)(4/6) = 7/6 + 2/3 - 2 = - 0.17 dollars (not sure)
c. Find the amount of moneyyour friend would gain in one round of this game, on average. Explain.
This is the part I'm confused with.
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