Suppose someone gives you 5 to 1 odds that you cannot roll two even numbers with the roll of two fair dice. This means you win $5 if you succeed and you lose $1 if you fail. What is the expected value of this game to you? Should you expect to win or lose the expected value in the first game? What can you expect if you play 00 times? Explain. (The table will be helpful in finding the required probabilities.)
1. What is the expected value of this game to you?
2. Should you expect to win (or lose) an amount equal to the expected value in the first game?
___ Yes, you can expect to win (or lose) the expected value in the first game.
___ No, the outcome of one game cannot be predicted.
3. What can you expected if you play 100 times? $____________
Explain this results
4. Average over 100 games, you should expect to win is $______