After paying $4 to play, a single fair die is rolled, and you are paid back the number of dollars corresponding to the number of dots facing up. For example, if a 5 turns up, $5 is returned to you for a net gain, or payoff, of $1 ; if a 1 turns up. $1 is returned for a net gain of − $3 ; and so on. What is the expected value of the game? Is the game fair?
After paying $4 to play, a single fair die is rolled, and you are paid back the number of dollars corresponding to the number of dots facing up. For example, if a 5 turns up, $5 is returned to you for a net gain, or payoff, of $1 ; if a 1 turns up. $1 is returned for a net gain of − $3 ; and so on. What is the expected value of the game? Is the game fair?
Solution Summary: The author analyzes the probability distribution of random variable X called a payoff table.
After paying
$4
to play, a single fair die is rolled, and you are paid back the number of dollars corresponding to the number of dots facing up. For example, if a 5 turns up,
$5
is returned to you for a net gain, or payoff, of
$1
; if a 1 turns up.
$1
is returned for a net gain of
−
$3
; and so on. What is the expected value of the game? Is the game fair?
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Discrete Distributions: Binomial, Poisson and Hypergeometric | Statistics for Data Science; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=lHhyy4JMigg;License: Standard Youtube License