A pair of dice are rolled. If the sum is 7, then the game ends andyou win 0. If

Question

A pair of dice are rolled. If the sum is 7, then the game ends andyou win 0. If the sum is not 7, then you have the option of eitherstopping the game and receiving an amount equal to that sum orstart over again. For each value i, i = 2-12, find your expectedreturn if you employ the strategy of stopping the first timethat a value at least as large as i appears. What valueof i leads to the largest expected return?

Hint: Let Xi denote the return when you use the critical value i.To compute E[Xi], condition on the initial sum.

Thank you

Explanation / Answer

that is a possibility, post the question and when you get an answercompare it with the solution that you got

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