Mullins Lyons
07/08/2024 · Elementary School

(7) A fair, standard die is rolled and the winnings for each outcome are as follows: Roll a 6: Win \( € 5 \) Roll a 3: Win \( € 1 \) Roll any other number. Win nothing (a) Calculate the expected value for this game. It is then decided to charge \( € 1.50 \) per game. (b) Calculate the expected value (net of the \( € 1.50 \) charge) for this game.

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(a) The expected value without the charge is €1. (b) The expected value (net of the €1.50 charge) is a loss of €0.50.

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