Answer:
-$1.33 or lose $1.33
Step-by-step explanation:
In this game, there are two possible outcomes.
- There is a 2 in 6 chance (rolling a 5 or a 6) that you win $8.
- There is a 4 in 6 chance (rolling a 1, 2, 3 or a 4) that you win nothing.
Note that for any outcome, you start off paying $4 to play.
The expected value of this game is:
[tex]E(X) =\frac{2}{6} *\$8+\frac{4}{6}*\$0-\$4\\E(X) = -\$1.33[/tex]
You are expected to lose $1.33 per play.
