A die is rolled. If it rolls to a 1, 2, or 3, you win $2. If it rolls to a 4, 5, or 6, you lose $1. Calculate the expected winnings.
A)$0.50
B)$3.00
C)$1.50
D)$1.00

Question

Quizplus · Accepted Answer

The expected winnings can be calculated by multiplying each outcome by its probability and summing these products. Winning $2 happens with a probability of 3/6 (for rolling a 1, 2, or 3), and losing $1 happens with a probability of 3/6 (for rolling a 4, 5, or 6). Thus, the expected winnings are (3/6)*$2 + (3/6)*(-$1) = $1/2 = $0.50.

A Die Is Rolled