Consider the Following Game

question 22

Multiple Choice

Consider the following game. You pay me an entry fee of x dollars, then I roll a fair die. If the die shows a number less than 3, I pay you nothing; if the die shows a 3 or 4, I give you back your entry fee of x dollars; if the die shows a 5, I will pay you $1; and if the die shows a 6, I pay you $3. What value of x makes the game fair (in terms of expected value) for both of us?

• A) $2
• B) $4
• C) $1
• D) $0.75
• E) $0.50

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Definitions:

South Carolina

A state in the southeastern region of the United States, known for its shoreline of subtropical beaches and marshlike sea islands, as well as its rich history in the American Civil War.

Colony Formation

The process by which countries establish settlements in distant territories under their control, often for economic gain, strategic advantage, or to spread their cultural or religious beliefs.

Colonial Development

The process by which European powers established and expanded colonies overseas, often involving the exploitation of local resources and indigenous populations.

English

Pertaining to England or its people, language, or culture; English refers to the language spoken in England and many other parts of the world.