Kelly plays a game of rolling a die in a casino. She pays $40 for each game of one roll of the die. If the score on the die is 1 or 3, she receives $70; if the score is 5, she gets $0. With a even score of 2, 4 or 6, she receives $40.
Unknown to her, the die has been doctored such that probability of getting the score of 5 is 30%. Each of the other scores of 1, 2, 3, 4, and 6 has equal chance of appearing.
Suppose Kelly plays 10 games (that is, 10 rolls of the die).
On average, is she expected to make a profit or a loss? Please enter P for profit, L for loss and N if it is neither a profit nor a loss in the answer box.
Answer:
Calculate Kelly's expected profit or loss in 10 games, giving your numerical answer to 2 decimal places. Please omit the + or - sign, as well as the $ sign.
Answer: $