Determine whether the following statement makes sense or does not make sense, an

Question

Determine whether the following statement makes sense or does not make sense, and explain your reasoning. Here's my dilemma, I can accept a $1000 bill or play a game ten times. For each roll of the single die, I win $700 for rolling 1 or 2: I win $100 for rolling 3, and I lose $400 for rolling 4, 5, or 6. Based on the expected value, I should accept the $1000 bill. Choose the correct answer below, and fill in the answer box to complete your choice. (Round to the nearest cent as needed. Do not include the $ symbol in your answer.) A. The statement does not make sense because the expected value after ten rolls is dollars, which is greater than the value of the current bill. B. The statement makes sense because the expected value after ten rolls is dollars, which is less than the value of the current bill.

Explanation / Answer

expected value after one roll =(2/6)*700+(1/6)*100- (3/6)*400 =50

therefore expected value after 10 games =50*10=500

therffore option B) the statement makes sense.............ten roll is 500 dollars; which is less then...

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