Question

Throw two dice. If the sum of the two dice is 8 or more, you win $39 . If not, you pay me $31 . Step 1 of 2: Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.

Answer 1

P(sum is at least 8) =

5/36 + 4/36 + 3/36 + 2/36 + 1/36 = 25/36

E(X) = $39(25/36) - $31(11/36) = $634/36

= $17.61