Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $11. If you roll a 2, 3, 4 or 5, you win $2. Otherwise, you pay $10. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. O You will win this much if you play a game. O This is the most likely amount of money you will win. O If you play many games you will likely win on average very close to $1.50 per game. d. Based on the expected value, should you play this game? O Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. O No, this is a gambling game and it is always a bad idea to gamble. O Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. O No, since the expected value is negative, you would be very likely to come home with less money if you played many games. O Yes, because you can win $11.00 which is greater than the $10.00 that you can lose.
Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $11. If you roll a 2, 3, 4 or 5, you win $2. Otherwise, you pay $10. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. O You will win this much if you play a game. O This is the most likely amount of money you will win. O If you play many games you will likely win on average very close to $1.50 per game. d. Based on the expected value, should you play this game? O Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. O No, this is a gambling game and it is always a bad idea to gamble. O Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. O No, since the expected value is negative, you would be very likely to come home with less money if you played many games. O Yes, because you can win $11.00 which is greater than the $10.00 that you can lose.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
Related questions
Question
Transcribed Image Text:Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $11. If
you roll a 2, 3, 4 or 5, you win $2. Otherwise, you pay $10.
a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4
decimal places where appropriate.
Probability
Distribution Table
P(X)
b. Find the expected profit. $
(Round to the nearest cent)
c. Interpret the expected value.
O You will win this much if you play a game.
O This is the most likely amount of money you will win.
O If you play many games you will likely win on average very close to $1.50 per game.
d. Based on the expected value, should you play this game?
O Yes, since the expected value is positive, you would be very likely to come home with more money if
you played many games.
O No, this is a gambling game and it is always a bad idea to gamble.
Yes, since the expected value is 0, you would be very likely to come very close to breaking even if
you played many games, so you might as well have fun at no cost.
O No, since the expected value is negative, you would be very likely to come home with less money if
you played many games.
O Yes, because you can win $11.00 which is greater than the $10.00 that you can lose.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON