What is the expected value from a single roll

Reference no: EM13264923

A single roll of a die with an equal probability of it landing on each of its six sides has the following payoffs:
If a value of 1 or 2 appears on the face of the die, the player receives $40.
If a 3 or 4 appear, the player receives $70.
If a 5 or 6 appear, the player receives $115.
What is the expected value from a single roll?
Would a risk-averse investor be willing to pay the expected value for the opportunity to play?

Reference no: EM13264923

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