You roll a fair die and get X, I roll a fair die and get Y, and you are paid max(X - Y, 0). How much would you pay to play?
Unlock detailed company stats for this questionUpgrade
You roll a fair die and get X; the interviewer rolls a fair die and gets Y; you are paid max(X - Y, 0). First give an 80% confidence interval for what you would pay to play, then compute the expected payoff. You may swap your fair die for one with three faces showing 1 and three showing 6: do you? Alternatively you may swap the interviewer's die for such a die: do you?
Community answers
No answers contributed by the community yet.
Related questions
X is uniform on (0, 1) and you are paid 1/X. How much would you pay to play?You are paid the roll of a 12-sided die, or you may give it up for the sum of two six-sided dice. How much would you pay to play?You are paid the value of a die roll in dollars and may reroll once, taking the second result. How much would you pay to play?Related courses
Course
Course