In a dice game, you win if the two dice come up 10 or higher. Otherwise, you lose $1. What should be the profit for winning to make this game fair?
A)$4
B)$5
C)$6
D)$7

Question

Quizplus · Accepted Answer

There are 36 possible outcomes when rolling two dice, and 6 of them result in a sum of 10 or higher. That means you win 6/36 = 1/6 of the time. In order to break even in the long run, the profit from winning must be equal to the expected loss from losing, which is 1/6 of $10 (the possible winnings) minus 5/6 of $1 (the possible losses). Solving for the profit yields $5.

In a Dice Game, You Win If the Two Dice