Question

Suppose you pay $2.00 to roll a fair die with the understanding that you will get back $4.00 for rolling a 2 or a 4, nothing otherwise. What is your expected value?

Answer 1

E = 4$ * (1/3) - 2$ * (2/3) = 0

Answer 2

$2.00

-$2.00

$4.00

-$0.67
these are my answers though?

Answer 3

by "get back" they mean payoff or you get 4$ so your payoff is 2$ ?
if so then:

E = 2$ * (1/3) - 2$ * (2/3) = -(2/3)$ ..

Answer 4

sorry for this. English is not my language :)

Answer 5

Haha, no problem! That makes more sense now, thank you!