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Worked Examples · Example 7

Q.A shopkeeper offers a simple game as part of a promotional lottery: a customer pays ₹10 to roll a single fair die once. If the die shows a 6, the customer wins ₹60 (a net gain after the ₹10 fee); otherwise the customer wins nothing (a net loss of the ₹10 fee paid). Let XX denote the customer's net gain. Find the probability distribution of XX, find E(X)E(X), and state whether the game is favourable, unfavourable, or fair to the customer.

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Step 1 — identify the values of XX and their probabilities.

A fair die has 6 equally likely faces, so P(6 appears)=16P(\text{6 appears}) = \tfrac{1}{6} and P(6 does not appear)=56P(\text{6 does not appear}) = \tfrac{5}{6}.

  • If a 6 appears: the customer wins ₹60 but had paid ₹10 to play, so the net gain is 60−10=5060-10 = 50.
  • If any other face appears: the customer wins nothing, but has still paid the ₹10 fee, so the net gain is 0−10=−100-10=-10 (a loss of ₹10).

This gives the probability distribution:

xix_i (net gain, ₹)5050−10-10
pip_i16\tfrac{1}{6}56\tfrac{5}{6}

Check: 16+56=1\tfrac{1}{6}+\tfrac{5}{6}=1 and both probabilities are non-negative — a valid distribution.

Step 2 — find E(X)E(X):

E(X)=50×16+(−10)×56=506−506=0E(X) = 50\times\frac{1}{6} + (-10)\times\frac{5}{6} = \frac{50}{6} - \frac{50}{6} = 0

Cross-check using decimals: 50×0.16‾=8.33‾50\times0.1\overline{6} = 8.3\overline{3} and −10×0.83‾=−8.33‾-10\times0.8\overline{3}=-8.3\overline{3}; adding these gives 8.33‾−8.33‾=08.3\overline{3}-8.3\overline{3}=0, confirming the fractional result exactly. …

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