A casino game has the following rules: roll a fair six-sided die once. If you roll a 1, you get $12. If you roll a 3, you get $3. If you roll any other number, you lose $1.
if u were running a casino, would u want this game there? why or why not?
A casino game has the following rules: roll a fair six-sided die once. If you roll a 1, you get $12. If you roll a 3, you get $3. If you roll any other number, you lose $1.
if u were running a casino, would u want this game there? why or why not?
We should compute expected value, if the casino comes out positive, you would want the game
So,
P(rolling a 1)
P(rolling a 3)
P(rolling 2 or 4 or 5 or 6)
Expected value=P(rolling a 1)*($ won by rolling a 1)+P(rolling a 3)*($ won by rolling a 3)+P(rolling 2 or 4 or 5 or 6)*($ won by rolling a 2 or 4 or 5 or 6)
This is a negative number. So if you play this game you will lose money over the long run. So a casino would be happy to have this game