Calculate the expected payoff from playing this


Consider the following game.

You pay $1.00 and a fair 6-sided die is rolled. If the roll is 1 or 3, then you get your dollar back and the game ends.

  • If the roll is 5, you get $2.00 back (your dollar plus an additional dollar) and the game ends.
  • If the roll is even, the die is rolled a second time.
  • If the second roll is 1 or 3, you get your dollar back and the game ends.
  • If the second roll is 5, you pay an additional dollar and the game ends.
  • If the second roll is even, the game ends.

Calculate the expected payoff from playing this game.

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Basic Statistics: Calculate the expected payoff from playing this
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