A game of chance involves rolling a 16-sided die once. If a number from 1 to 3 comes up, you win 4 dollars. If the number 4 or 5 comes up, you win 7 dollars. If any other number comes up, you lose. If it costs 5 dollars to play, what is your expected net winnings

-$1.8

or loss of $1.8

Step-by-step explanation:

Given the following parameters, we have

The probability of winning $4 is 3/16

The probability of winning $7 is 2/16

The probability of losing $5 is 11/16

E(X) = (4 * 3/16) + (7 * 2/16) + (-5 * 11/16)

= 12/16 + 14/16 - 55/16

= -29/16

= -1.8

Hence, your expected net "winnings" would be -$1.8. That's an expected loss of $1.8.

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