Solve the Problem. -Bob and Fred Play the Following Game. Bob Rolls a Bob

question 235

Multiple Choice

Solve the problem.
-Bob and Fred play the following game. Bob rolls a single die. If the result is the number 1, 2, 3, 4, Or 5 , Bob must pay Fred the number of dollars indicated by the number rolled. If a 6 is rolled, Fred must pay Bob $45. Find Fredʹs expectation.

• A) $4.00
• B) $0.00
• C) -$10.00
• D) -$5.00

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Definitions:

Offeror Can Revoke

The legal principle that allows the person making an offer (offeror) to withdraw that offer before it is accepted, subject to certain conditions.

Repudiating It

The process of formally rejecting or disavowing a previously held position or agreement.

Offer Can Be Revoked

The proposition that an offer can be withdrawn by the offeror before it is accepted by the offeree, making it legally void.

Performance of an Act

The execution or accomplishment of an action, task, or function, often specified in a legal context or contractual obligation.