In a carnival game, a player rolls a fair die. The player wins ₱60 if a 6 is rolled, wins ₱12 if a 5 is rolled, and loses ₱12 if any other number is rolled. What is the player's expected payoff per roll?
Answer and explanation
Correct answer: C. +₱4
- Step 1: Expected value E = (1/6)(60) + (1/6)(12) + (4/6)(-12). Step 2. 10 + 2 - 8 = +4 pesos. Answer: +₱4. Why not the others: A fair zero-expectation game would have E = 0.
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