Need economics help with to play using a dice

Dec 17th, 2015
Anonymous
Category:
Business Finance
Price: $5 USD

Question description

You are invited to participate in the following game, which is played with one die. Assume the die to be fair.
The rules are as follow: Investment is 100 THB. If you roll a 1,2,3 or 4 you lose your investment. If you roll a 5, i will pay you 150 THB. If you roll a 6, I will pay you 500 THB.

Should you participate in this game? Why/why not?
Hint: Use the expected value to determine whether or not this is a good investment.

Tutor Answer

(Top Tutor) ra786ubt
School: Cornell University

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