12 outcomes ... H or T, and 1 thru 6
2 outcomes pay $2
... P = 2/12 = 1/6
... expected return ... 2/6 or $1/3
3 outcomes pay $1
... P = 3/12 = 1/4
... expected return ... $1/4
A gambling game works as follows: you flip a fair coin and roll a fair six-sided die. You will be paid $2 if you roll a 6 and $1 if you get a head and an odd number of spots. Otherwise, you have to pay $2.50.
a) What is the probability of rolling a die greater than 1?
b) What is the probability of winning money from this game? Show all your work.
c) How much can you expect to win if you played this game 20 times?
1 answer
3 answers