Consider playing a game that requires rolling a fair six-sided
die. If the die is rolled and the outcome is less than 4, you will
lose $5. If the die is rolled and the outcome is more than 4, you
will win $20. If the outcome of the die roll is 4, you neither win
nor lose any money. Let X represent your profit (could be positive,
negative or zero) on a single game.
a) [3] Give the probability distribution for X in table
form.
b) [3] Calculate the expected value of your profit on a single
game.
c) [2] Interpret the value you obtained for part b.