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Math Help - Fair dice roll. The expected payoff?

  1. #1
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    Fair 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:
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    Re: Fair dice roll. The expected payoff?

    If the sum is neither 7 or 11? What then?
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    Re: Fair dice roll. The expected payoff?

    Not sure because this is all the information the book provided. I'm guessing zero.
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    Re: Fair dice roll. The expected payoff?

    I figured it out the expected value is $0.55.
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    Re: 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.
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