Quantitative Methods Q197

0. A six sided biased dice has the probability of landing on its edge twice out of 50 throws. The probability of any number showing up is equal. When the dice is rolled, the prize is equal to the number it lands on, i.e. $1 for showing 1, $2 for showing 2 and so on. The prize of landing on its edge is $10. What is the expected value of the prize on a single roll of dice?

Answer
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Option : A
Explanation : The probability of the dice landing on its edge is 2/50 = 0.04. Since the dice is biased, the probability of showing up any number won’t be 1/6. It has been stated that the probability of showing any number is equal, i.e. = 0.16. The distribution is as follows:
Outcome Probabilities Prizes Expected
Value
Edge 0.04 $10 0.4
1 0.16 $1 0.16
2 0.16 $2 0.32
3 0.16 $3 0.48
4 0.16 $4 0.64
5 0.16 $5 0.80
6 0.16 $6 0.96
3.76

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