Results 1 to 2 of 2

Math Help - Expected Value of a gamble?

  1. #1
    Junior Member
    Joined
    Apr 2012
    From
    Alaska
    Posts
    31

    Expected 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.
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Behold, the power of SARDINES!
    TheEmptySet's Avatar
    Joined
    Feb 2008
    From
    Yuma, AZ, USA
    Posts
    3,764
    Thanks
    78

    Re: Expected Value of a gamble?

    Quote Originally Posted by allstar2 View Post
    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.
    The expected value is the value multiplied by the probability of the event. Then you must sum over all events in the sample space.

    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?
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Expected Value #2
    Posted in the Statistics Forum
    Replies: 1
    Last Post: February 19th 2010, 03:12 PM
  2. Expected Value
    Posted in the Statistics Forum
    Replies: 2
    Last Post: February 19th 2010, 02:04 PM
  3. Expected value ?
    Posted in the Algebra Forum
    Replies: 3
    Last Post: June 17th 2009, 07:21 PM
  4. expected value
    Posted in the Advanced Statistics Forum
    Replies: 1
    Last Post: January 16th 2009, 08:51 AM
  5. Expected Value
    Posted in the Discrete Math Forum
    Replies: 5
    Last Post: December 7th 2008, 05:38 AM

Search Tags


/mathhelpforum @mathhelpforum