Question

Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $13. If you roll a 4 or 5, you win $5. Otherwise, you pay $5.

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. ​

Answer 1

Step-by-step explanation:

X = profit.......P(X)

----------------------

+$6.................1/6

+$3.................2/6 = 1/3

-$5.................3/6 = 1/2

Part b:

Expected profit = +$6(1/6) + $3(1/3) + -$5(1/2) = -$0.50