A simple die bet

You roll a fair die: you win $10 if it shows a 6, and lose $1 otherwise. What is your expected profit per roll (in dollars)? Give a decimal to four places.

Show hints (2)+
  1. Weight each payoff by its probability.
  2. $\tfrac16(10)+\tfrac56(-1)$.

Answer

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0.8333 (± 0.001)

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Asked at: Akuna Capital, Flow Traders

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