Solve the Problem. -Suppose You Pay $3.00 to Roll a Fair Die with Fair

question 108

Multiple Choice

Solve the problem.
-Suppose you pay $3.00 to roll a fair die with the understanding that you will get back $5.00 for rolling a 3 or a 6, nothing otherwise. What is your expected value?

• A)$3.00
• B)-$1.33
• C)-$3.00
• D)$5.00

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Definitions:

Product Liability Actions

Legal actions taken against manufacturers or sellers for producing or distributing a faulty product that caused harm to the consumer.

Comparative Negligence

A legal principle that reduces the plaintiff's damages based on their percentage of fault in an accident.

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.