You are on a TV show. You have been asked to either play a dice game five times or accept a $50 bill. The dice game works like this. If you roll a 1, 2 or 3, you win $49. If you roll a 4 or 5, you lose $24. If you roll a 6, you lose $87. Should you play the game? Use expected values and decision theory to justify your answer. (Round the answer to the nearest cent.) O Yes Ο No EV = $ 2

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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You are on a TV show. You have been asked to either play a dice game five times or accept a $50 bill. The dice game works like this:

- If you roll a 1, 2, or 3, you win **$49**.
- If you roll a 4 or 5, you lose **$24**.
- If you roll a 6, you lose **$87**.

Should you play the game? Use expected values and decision theory to justify your answer. (Round the answer to the nearest cent.)

- [ ] Yes
- [x] No

Expected Value Calculation:
\[ EV = \$ \boxed{2} \] 

Note: The calculation seems to be incorrect as indicated by the red cross next to the expected value.
Transcribed Image Text:You are on a TV show. You have been asked to either play a dice game five times or accept a $50 bill. The dice game works like this: - If you roll a 1, 2, or 3, you win **$49**. - If you roll a 4 or 5, you lose **$24**. - If you roll a 6, you lose **$87**. Should you play the game? Use expected values and decision theory to justify your answer. (Round the answer to the nearest cent.) - [ ] Yes - [x] No Expected Value Calculation: \[ EV = \$ \boxed{2} \] Note: The calculation seems to be incorrect as indicated by the red cross next to the expected value.
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