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Consider a Game in Which a Fair Die Is Thrown

Question 75

Multiple Choice

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.

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