Consider a game in which a fair die is thrown. The player pays $5 to play and wins $2 for each dot that appears on the roll. Define X = number on which the die lands, and Y = player's net profit (amount won - amount paid to play).
-Based on the expected value, is it worth the $5 to enter?
A) No, since the expected profit is also $5.
B) Yes, since in the long-run, your average net profit is greater than zero.

Question

Quizplus · Accepted Answer

In the long run, the player's average net profit is $1.67, which is greater than the $5 entry fee.

Consider a Game in Which a Fair Die Is Thrown