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Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $16. If you roll a 4 or 5, you win $1. Otherwise, you pay $2. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. You will win this much if you play a game. If you play many games you will likely win on average very close to $2.00 per game. This is the most likely amount of money you will win. d. Based on the expected value, should you play this game? Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. No, since the expected value is negative, you would be very likely to come home with less money if you played many games. Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. No, this is a gambling game and it is always a bad idea to gamble. Yes, because you can win $16.00 which is greater than the $2.00 that you can lose.

Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $16. If you roll a 4 or 5, you win $1. Otherwise, you pay $2. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. You will win this much if you play a game. If you play many games you will likely win on average very close to $2.00 per game. This is the most likely amount of money you will win. d. Based on the expected value, should you play this game? Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. No, since the expected value is negative, you would be very likely to come home with less money if you played many games. Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. No, this is a gambling game and it is always a bad idea to gamble. Yes, because you can win $16.00 which is greater than the $2.00 that you can lose.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 10E
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Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $16. If you roll a 4 or 5, you win $1. Otherwise, you pay $2. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table X P(X) b. Find the expected profit. $ (Round to the nearest cent) c. Interpret the expected value. You will win this much if you play a game. If you play many games you will likely win on average very close to $2.00 per game. This is the most likely amount of money you will win. d. Based on the expected value, should you play this game? Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. No, since the expected value is negative, you would be very likely to come home with less money if you played many games. Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. No, this is a gambling game and it is always a bad idea to gamble. Yes, because you can win $16.00 which is greater than the $2.00 that you can lose.
Probability Distribution Table X P(X)
Transcribed Image Text:Probability Distribution Table X P(X)
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