In this game I roll the dice and which ever number the dice lands on I pay you that amount of money. For example if the dice lands on 4 I pay you £4 pounds.
A fair price to play this game should be £3.50 as then the player or myself should not win any money if this game is played infinty times.
How much should the fair price be to play the game if their is an option after the first roll to roll again. For example if you roll a 1 first go you will certainly want to roll again as youwill always roll the same or better. However if you were to roll a 6 you would not want the option to roll again as you have already won the maximum amount of money.
I priced this option at £3.57, however I been told that is wrong. Can anyone explain why?
Thanks in advance