Answer :
Using the expected value of a discrete distribution, it is found that the game would be fair with a cost of 3 tokens for 1 game.
What is the mean of a discrete distribution?
The expected value of a discrete distribution is given by the sum of each outcome multiplied by it's respective probability.
Considering the situation described in this problem, that a dice has 6 sides, and x as the price in tokens, the distribution of prizes in this problem is given as follows:
- P(X = 2 - x) = 1/6. (rolls 1 wins 2).
- P(X = 4 - x) = 1/6. (rolls 2 wins 4).
- P(X = 6 - x) = 1/6.
- P(X = 8 - x) = 1/6.
- P(X = 10 - x) = 1/6.
- P(X = -12 - x) = 1/6.
The game is fair when E(x) = 0, hence:
1/6(2 - x + 4 - x + 6 - x + 8 - x + 10 - x) - 1/6(12 + x) = 0.
30 -5x - 12 - x = 0
6x = 18
x = 3.
The cost should be of 3 tokens for 1 game.
More can be learned about the expected value of a discrete distribution at https://brainly.com/question/3316979
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