A Dice Game Involves Rolling Three Dice and Betting on One

question 101

Multiple Choice

A dice game involves rolling three dice and betting on one of the six numbers that are on the dice. The game costs $12 to play, and you win if the number you bet appears on any of the dice. The
Distribution for the outcomes of the game (including the profit) is shown below: $\begin{array}{ccc}\hline \text { Number of dice with your number } & \text { Profit } & \text { Probability } \\\hline 0 & -\$ 12 & 125 / 216 \\1 & \$ 12 & 75 / 216 \\2 & \$ 14 & 15 / 216 \\3 & \$ 36 & 1 / 216 \\\hline\end{array}$

Find your expected profit from playing this game.

• A) \(\$ 0.50\)
• B) \(\$ 12.20\)
• C) \(- \$ 1.69\)
• D) \(\$ 6.47\)

---

Definitions:

Employee Stock Ownership Plan

A program that gives employees ownership interest in the company through stock ownership, often used as a corporate finance strategy.

Incentive Plan

A structured program designed to motivate and compensate employees beyond their regular paychecks, often based on performance, productivity, or achieving specific goals.

Stock Ownership Plans

Employee benefit plans that give workers ownership interest in the company through the acquisition of stock, often aimed at improving employee motivation and performance.

Stock Price

The cost of purchasing a share of a specific company, which can fluctuate based on market conditions and the company's performance.