A game is played using one die. If the die is rolled and shows a 2, the player wins $7. If the die shows any number other than 2, the player wins nothing. If there is a charge of $1 to play the game, what is the game's expected value? Round to the nearest cent.

Question

anonymous · Answer

is there are 6 sides on a die, and he can only get a 2. the chances of him winning are 1/6

anonymous · Answer

but what about the game, what is the chance of  the game winning?

anonymous · Answer

or in other words what are the chances of the person losing?

amistre64 · Answer

expected value is determined by the sum of xP(x)

anonymous · Answer

Number  Outcome    probability  
   1           $0                x 1/6     = $0
   2           $7                x 1/6    = $1.166...
   3           $0                x 1/6    =  $0 
etc., etc., 
                  Total :                         $1.166
Expected value = 1.166, but remember if there is a $1 charge, you will only get $0.166
(or $0.17c rounded to the nearest cent).