Jessie is playing a game and bets $5 on the come out roll. If a 7 or 11 is rolled, she wins $5. This happens with a probability of 29. If a 2,3,or12 is rolled, she loses her $5. This has a probability of 19. If any other number is rolled, she does not win or lose, and the game continues. Find the expected value for Jessie on the come out roll.

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Answer:

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Step-by-step explanation:

We want to find the expected value for Jessie on the come out roll.

The expected value is EV = $0.50

We know that for an event with outcomes {x₁, x₂, ..., xₙ}, each with probability {p₁, p₂, ..., pₙ}, the expected value is given by:

EV = x₁*p₁ + x₂*p₂ + ... + xₙ*pₙ

Where the probabilities are written in decimal form.

We have the outcomes:

x₁ = winning $5.

p₁ = 0.29

x₂ = losing $5

p₂ = 0.19

x₃ = not win nor lose

p₃ = 1 - 0.19 - 0.29 = 0.52

Then the expected value is:

EV = $5*0.29 - $5*0.19 + $0*0.52 = $0.50

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