the game of dots is played by rolling a fair die and receiving 1$ for each dot showing on the top face of the die. What cost should be set for each roll if the game is to be considered a fair game?

Answer 1

expected value
= (1/6)(1) + (1/6)(2) + (1/6)(3) + (1/6)(4) + (1/6)(5) + (1/6)(6)
=(1/6)(1+2+3+4+5+6) = 21/6
= 3.5

so a fair cost would be $3.50

Answer 2

Expected Value
• Making choices by comparing their expected values is a pervasive method of analysis because of its ease of computation and its power. Let’s say you roll a fair die and you were paid, in dollars, the number that landed face up from a fair die roll, what is the most you would pay to play that game? If you were to pay this amount and play this game repeatedly, over a long period of time, how much money would you expect to gain or lose, on average? What if you paid more to play the game? What if you paid less?

Answer 3

What is the answer of is finish first a fair game