Consider the following game: Two fair dice are rolled. If the sum is 7, you win $ 10. If the sum is 11, you lost $ 20. What is the expected payoff for this game? (Round to the nearest penny.)

What is the expected payoff:

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- Dec 3rd 2013, 09:02 PMAndi963258741Fair dice roll. The expected payoff?
Consider the following game: Two fair dice are rolled. If the sum is 7, you win $ 10. If the sum is 11, you lost $ 20. What is the expected payoff for this game? (Round to the nearest penny.)

What is the expected payoff: - Dec 3rd 2013, 09:11 PMLimpSpiderRe: Fair dice roll. The expected payoff?
If the sum is neither 7 or 11? What then?

- Dec 3rd 2013, 09:17 PMAndi963258741Re: Fair dice roll. The expected payoff?
Not sure because this is all the information the book provided. I'm guessing zero.

- Dec 3rd 2013, 09:28 PMAndi963258741Re: Fair dice roll. The expected payoff?
I figured it out the expected value is $0.55.

- Dec 4th 2013, 11:33 AMHallsofIvyRe: Fair dice roll. The expected payoff?
Assuming that there is neither loss nor gain if the roll is anything other than 7 or 11, it's a straightforward calculation. The probability of rolling "7" is 1/6 while the probability of rolling "11" 1/18. The expected value is 10(1/6)- 20(1/18)= 30/18- 20/18= 10/18= 5/9 dollars which is $0.55 approximately.