1) What is the expected value of the following gamble? You are to roll a pair of dice. If the dice come up on a natural, 7, or 11, you win 10 dollars. If the dice come up snake-eyes, 2 or box cars, 12, you lose 20 dollars. Otherwise the bet is off.

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- Sep 24th 2012, 06:08 PMallstar2Expected Value of a gamble?
1) What is the expected value of the following gamble? You are to roll a pair of dice. If the dice come up on a natural, 7, or 11, you win 10 dollars. If the dice come up snake-eyes, 2 or box cars, 12, you lose 20 dollars. Otherwise the bet is off.

- Sep 24th 2012, 07:11 PMTheEmptySetRe: Expected Value of a gamble?
The expected value is the value multiplied by the probability of the event. Then you must sum over all events in the sample space.

$\displaystyle 10\cdot P(7)+10 \cdot P(11)-20P(2)-20P(12)$

Since the value of the other events is zero they do not need to be summed over.

Can you finish from here?